Published: 01st February 2021
Union Budget 2021: One-person companies allowed now to boost India's start-up ecosystem
Non-resident Indians will also be able to incorporate OPCs in India. This will be a big boost for start-ups, said Nirmala Sitharaman
As a further measure that directly benefits start-ups and innovators, the Finance Minister proposed to incentivise the incorporation of one-person companies during the Union Budget 2021. "By allowing one-person companies to grow without any restriction on paid-up capital and allowing their conversion into any other type of company at any time, reducing the residency limit for an Indian citizen to set up a one-person company from 182 days to 120 days. Non-resident Indians will also be able to incorporate OPCs in India. This will be a big boost for start-ups," she added.
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Nirmala Sitharaman presented her third budget this year at 11 am at the Lok Sabha. Amid the ongoing Coronavirus pandemic, the Finance Minister presented a paperless budget. This is the first time in India's history that a paperless Union Budget was presented. As the budget papers will not be printed, the Finance Minister had also launched an official mobile app to provide complete access to all budget documents. The mobile app can be downloaded from the Union Budget Web Portal www.indiabudget.gov.in.
The Finance Minister had assured a budget “like never before”. The budget 2021 has a greater significance as it comes amid the COVID-19 pandemic which has caused economic disruption. FM Nirmala Sitharaman replaced the Swadeshi 'bahi khata' and switched to a tablet. She was seen carrying a tablet kept inside a red coloured cover with a golden coloured national emblem embossed on it. The Economic Survey 2020, presented by FM Nirmala Sitharaman on Friday pegged the GDP growth at 11 per cent in Financial Year 2022.