<\/span><\/h2>\n\n\n\nCompanies\n(Incorporation) Rules, 2014 states that only a natural individual who is an\nIndian national & resident in India- <\/p>\n\n\n\n
(a)\nwill hold the right to incorporate a one-person company;<\/p>\n\n\n\n
(b)\nshall be a nominee for the OPC’s sole member<\/p>\n\n\n\n
The criteria of 180 days have been reduced to 120 days to allow NRIs to operate One Person Company in India. <\/strong><\/p>\n\n\n\nThe table below will give a clear understanding of relaxations conferred to OPC in Budget 2021.<\/p>\n\n\n\n
\n S.No<\/strong>\n <\/td>\n Areas Subjected to Changes<\/strong>\n <\/td>\n Current Provisions<\/strong>\n <\/td>\n Proposed Provisions<\/strong>\n <\/td><\/tr>\n 1. <\/strong>\n <\/td>| \n Who are eligible to form an\n OPC in India?\n <\/td> | \n An Indian national is\n eligible to incorporate OPC in India.\n \n <\/td> | \n Non- Resident Indian (NRI) can also\n incorporate OPC in India.\n <\/td><\/tr> | \n 2. <\/strong>\n <\/td>| \n Residency limit for an Indian citizen\n \n <\/td> | \n 182 days\n <\/td> | \n 120 days \n <\/td><\/tr> | \n 3. <\/strong>\n <\/td>| \n Conversion of OPCs into other\n company forms\n \n <\/td> | \n Conversion is possible only\n if OPC has completed two years of service life from the date of incorporation\n or has paid-up share capital more than INR 50 lakhs, or average annual\n turnover during any FY exceeds INR 2 crores.\n <\/td> | \n No such criteria will be imposed on OPCs\n seeking conversion to other company forms.\n <\/td><\/tr><\/tbody><\/table>\n\n\n\n Apart from these amendments,\nUnion Budget 2021 also proposed some tax relaxations for Innovators &\nstartups, like claiming tax holidays till March 31, 2022, etc. These changes\nwill boost such Government’s initiative. <\/p>\n\n\n\n | | | | | | | |