Recent Amendment in Companies Act in budget 2021

Recent Amendment in Companies Act in budget 2021

Applicable w.e. f  01.04.2021

Change in the Definition of the Small Company

Companies (Specification of Definitions Details) Amendment Rules, 2021.

  1. A company having paid-up capital and turnover exceeding rupees two crores and rupees twenty crores respectively

Change in the OPC Provisions.

Companies Incorporation second Amendment rules 2021 dated 01.02.2021

  1. An Indian Citizen whether resident in India or otherwise can be the member of the OPC Company (earlier only Indian Citizen who is resident were allowed to be a member).
  2. Period of stay for resident status shall be 120 days (earlier it was 182 days).
  3. OPC can be converted anytime into a Private or public Company by filing INC-6 without the Pre requirement of Turnover or paid-up capital (Earlier an OPC can be converted only after 2 years of incorporation subject to the threshold limit (paid-up share capital) is increased beyond fifty lakh rupees or its average annual turnover during the relevant period exceeds two crore rupees).

Merger and amalgamation provisions

Companies (Compromises, Arrangements, and Amalgamations) Amendment Rules, 2021

  1. A scheme of merger or amalgamation under section 233 of the Act may be entered into between any of the following class of companies, namely:-     (i) two or more start-up companies; or                                                                                                                                                                              (ii) one or more start-up company with one or more small company.

 

                 CS  NEETU SHARMA

     (Associated Partner of Zumosun Soft Invention/thelegalbank)