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| Decriminalization of the Limited Liability Partnership (LLP) Act, 2008 proposed |
NEW DELHI (LisbonTimes):- Central Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman proposed reforms for small companies and MSMEs to strengthen the Startup ecosystem while presenting Union Budget 2021-22 in Parliament here today.
Decriminalization of
the Limited Liability Partnership (LLP) Act, 2008
The Finance Minister
proposed to take up decriminalization of the Limited Liability Partnership
(LLP) Act, 2008 on similar lines of the decriminalizing of the procedural and
technical compoundable offenses under the Companies Act, 2013, which is now
complete.
Revision in 'Small
Companies' definition
Smt. Sitharaman
proposed to revise the definition under the Companies Act, 2013 for Small
Companies by increasing their thresholds for Paid-up capital from “not
exceeding Rs 50 lakh” to “not exceeding Rs 2 crore” and turnover from “not
exceeding Rs 2 crore” to “not exceeding Rs 20 crore”. This will benefit more
than two lakh companies in easing their compliance requirements.
Proposed easing of
rules in 'One Person Companies' for Start-Ups, Innovators
As a further measure
which directly benefits Start-ups and Innovators, the Finance Minister proposed
to incentivize the incorporation of One Person Companies (OPCs) by allowing
OPCs to grow without any restrictions on paid-up capital and turnover, allowing
their conversion into any other type of company at any time, reducing the
residency limit for an Indian citizen to set up an OPC from 182 days to 120
days and also allow Non-Resident Indians (NRIs) to incorporate OPCs in India.
Strengthening of NCLT
framework for faster debt resolution
To ensure faster
resolution of cases, the Finance Minister stated that the NCLT framework will be
strengthened, the e-Courts system shall be implemented, and alternate methods of
debt resolution and a special framework for MSMEs shall be introduced.
Launch of new MCA21
Version 3.0
 Act, 2008 proposed){kind=link}
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