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Companies with paid-up capital up to Rs 2 cr and turnover up to Rs 20 cr will fall under small companies.
The Budget made space for easing norms around setting up of OPC.
It has reduced the residency limit of NRIs from 182 to 120 days
Among advantages, one can say that an OPC is free from stringent legal compliances such as board meetings, financial statement inclusions, quorums, mandatory rotation of an auditor.
Delivering the Union Budget 2021-22, Finance Minister Nirmala Sitharaman, on Monday, proposed changes in definition of small companies under the Companies Act. Companies with paid-up capital up to Rs 2 crore and turnover up to Rs 20 crore will fall under small companies. Previously, this threshold held the limit of paid-up capital to Rs 50 lakh and turnover up to Rs 2 crore. This is aimed at benefiting more than 2 lakh companies in compliance required.
India will look beyond fiscal deficits to get the economy back on its feet. That’s the message conveyed by Finance Minister Nirmala Sitharaman in the annual budget for 2021-22, presented on Monday (February 1, 2021).
India’s spending plan aims to jumpstart the economy that has been going through a protracted slump in 2020-21 fiscal year with the GDP growth projected to contract by 7.8 per cent. That’s hardly surprising since all other major economies have taken the fiscal boost route to revive the flagging economic growth.
Under the current environment, government spending is a significant component to boost production, consumption and job creation. Of course, it has long-term consequences in terms of potential debt overhang, a surge in inflation, huge interest in government borrowings and currency instability and potential payment crisis in the future.