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DECRIMINALISATION OF THE LIMITED LIABILITY PARTNERSHIP (LLP) ACT, 2008 PROPOSED REVISION IN SMALL COMPANIES DEFINITION PROPOSED EASING OF RULES IN ONE PERSON COMPANIES FOR START-UPS, INNOVATORS STRENGTHENING OF NCLT FRAMEWORK FOR FASTER DEBT RESOLUTION PROPOSED LAUNCH OF NEW MCA21 VERSION 3.0 Union Minister for Finance Corporate Affairs Smt. Nirmala Sitharaman proposed reforms for small companies and MSMEs to strengthen Start up ecosystem, while presenting Union Budget 2021-22 in
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FAQ :
The definition of a 'small company' has been revised with increased thresholds. Paid-up capital can now be up to Rs 2 crore (previously Rs 50 lakh), and turnover can be up to Rs 20 crore (previously Rs 2 crore).
More than two lakh companies are expected to benefit from the revised definition of 'small companies'.
Rules for OPCs have been eased to benefit start-ups and innovators. This includes allowing OPCs to grow without restrictions on paid-up capital and turnover, reducing the residency limit for Indian citizens to set up an OPC, and permitting Non-Resident Indians (NRIs) to incorporate OPCs.
Yes, the budget also proposes the decriminalisation of the Limited Liability Partnership (LLP) Act, 2008, strengthening the NCLT framework for faster debt resolution, and the launch of a new data analytics, AI, and machine learning-driven MCA21 Version 3.0.
The NCLT framework will be strengthened to ensure faster resolution of cases, with the implementation of an e-Courts system and the introduction of alternate debt resolution methods and a special framework for MSMEs.
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