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Good news for those doing their business! Government eases 5 rules, will be applicable from April 1

OPC-One Person Company: The government has made the One Person Company (OPC-One person company) rules easier. The new rules will come into effect from 1 April 2021.

The government has taken a big decision to promote startups and innovation in the country. The government has made the One Person Company (OPC-One person company) rules easier. Experts say that only one person can start a company through One Person Company and he can invest in the company as per his convenience. Also, the company can also be changed according to its needs. In simple words, the company formed through OPC can be converted into a private limited company or a public limited company.

Know about OPC OPC-One Person Company

This concept is new in India. It is extremely popular in many countries around the world including Singapore, America and even Europe. Experts tell that this is new in India. Now only time will tell how it works in India.

OnePerson Company is an example for the Indian corporate world. With this, the Indian corporate world will also be according to the global standard. This report also says that it will also promote micro and small scale business.

How OPC becomes OPC-One Person Company

Experts say that there is only one shareholder in a OnePerson company. He is also the director of the company. However, it can also have more than one director. The maximum limit of directors is 15.

The process of making OPC is similar to that of any private limited company. ‘OPC’ would have to be placed behind the name of the company in the same way as ‘Private Limited’ writes.

This company is owned by one person, so you have to choose a nominee. The nominee must submit his consent in writing to the Registrar.

The owner can change the nominee as per his wish, but he will have to inform the registrar every time. You can start a business within 7 days of receiving the document.

This decision was made in the budget regarding OPC

Finance Minister Nirmala Sitharaman had said in the budget presented in Parliament on 1 February 2021 that the OPC rules will be changed. They will be allowed to increase without any restriction on paid up capital and turnover.

Apart from this, at any time, it can change the form of any category of company. The time limit for making an OPC for an Indian citizen has been reduced from 182 days to 120 days.

Know about the new rules of OPC OPC-One Person Company…

The new rules will come into effect from April 1, 2021.

(1) Earlier NRIs were not allowed to OPC. Now any person who is an Indian citizen, whether he is a resident of India or not, will be allowed to constitute OPC.

(2) To be a resident of India, it has been proposed to reduce the period of residence from 182 days to 120 days in respect of NRIs.

(3) Now the category of the company can be changed easily. The OPC can be converted into a private or public company other than a company registered under Section 8 of the Act and the minimum number of members and directors may be increased to two or a minimum of seven members and three directors as per the situation .

(4) Similarly, the currently applicable capital and turnover limits for OPCs (share capital of fifty lakh rupees and average annual turnover of two crores rupees during the relevant period) are being abolished, so that the capital and turnover to OPC Do not face any restrictions in increasing

(5) E-form number INC-5 has been abolished, the e-form applicable to OPC has been rationalized and E-Form INC-6 (OPC to a private company or a public company and a private company to OPCK Application for conversion) has been modified.

 

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ praveshmaurya24@gmail.com
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