Union Budget 2021: Why FM’s New ‘One Person Company’ Amendments May Not Help Most Startup Founders

The latest additions to the ‘One Person Company’ (OPC) structure now allows NRIs to use the route and directly incorporate a company in India

The new additions to the OPC structure do away with minimum and maximum thresholds of paid-up capital requirements

Lawyers and other company experts are sceptical about the new additions as these do not benefit most of the founders looking to start up

Finance Minister Nirmala Sitharaman’s latest additions to the One Person Company (OPC) structure, including relaxation for NRIs and removal of threshold requirements for paid-up capital, are unlikely to increase the ease of incorporating a startup in India, contrary to initial reactions from the startup ecosystem. 

Several investors, lawyers and experts who have spoken to Inc42 think these relaxations may expedite the time required to incorporate an entity in India. However, they only favour a small group of NRIs and domestic founders who may have hiccups while starting up themselves without…

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