Govt To Incentivise Incorporation Of One Person Companies For Boosting Startups

CIOReviewIndia Team | Monday, 01 February 2021, 07:36 IST

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The Honorable Finance Minister of India, Nirmala Sitharaman, amidst several groundbreaking announcements for the IT  sector in the Union Budget 2021, said Govt Will Incentivise Incorporation Of One Person Companies For Boosting Startups

Under this announcement, it proposes to incentivize the incorporation of one person companies (OCPs) which is a move that will benefit startups and innovators.

In the first without paper budget, the Honorable Indian Finance Minister, Nirmala Sitharaman said that the incorporation of OCPs will be incentivized by allowing one person companies to attain growth without restriction on the paid up capital and turnover.

This will reduce the residency limit of an Indian citizen for setting up an OPC from 182 days to 120 days and will be allowing also non-resident Indians to incorporate OPCs in India.

During the Union Budget Speech, she also announced that a capital investment of Rs. 5.54 trillion will be invested for the infrastructure development of the country. It is expected to boost the demand of heavy and medium commercial vehicles market of India.

In another scheme announced by the FM, the rural and the urban health and wellness centers get 17,000 and 7,000.

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