Dear Smt Sitharamanji,
During your budget speech, you announced changes
proposed to be made in respect of One Person Company
This is a very welcome step .
Though they may not admit publicly ( political hara-kiri
? ), Indian politicians and economists agree that, neither the Public Sector
nor the Private Sector can provide jobs to 12 million youth
every year – year after year
Now consider this :
Ø No
of Indians in age-group 15 -24 …………………… 229 million
Ø Unemployment
Rate in this group…………………….. 24 %
Ø That
is …………………………………………………………………… 55 million
I hope the details of OPC relaxations planned, when
released, will consider the suggestions
that I had e-mailed in my following blogs :
A
NEW ECONOMIC ORDER ? aka " Start Up Act - 2015 "…………….. [ 12 Sept 2015 ]
21-22
Budget Blues : One Person Company ( OPC )………………………[ 01 Feb 2021 ]
Mere tinkering
with OPC won’t help .
With regards,
Hemen Parekh
/ 16 Feb 2021 / hcp@RecruitGuru.com
===================================================
Sources :
Single,
Ready to Start Up
/ ET Magazine Cover Story / Feb
07-13, 2021
Unlisted
companies get to access funds raised at shorter time span / BL /
13 Feb 2021
The one man show: Understanding
the concept of One Person Company / ET / 23 Nov 2019
FAQ On One Person Company /
Ministry of Corporate Affairs
One Person Company
===================================================
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OPC Provision |
As reported in ET Cover Story and other sources ( Budget ) |
As suggested in my blog / e-mail ( 12 Sept
2015 ) |
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Financing
- Funding |
Easier
Bank Credit facilities / Unlisted companies allowed to utilize the funds
raised within a shorter period of time |
A Start Up will be free to raise funds
from any source ( Individuals / Companies / PE funds / VCs / Angel
Investors / Religious Trusts etc ) 100 % FDI will be permitted in Start Ups A Start Up can receive loans or equity and be
able to accept fixed deposits . It can also give loans to individuals or
other Start Ups or invest in other Start Ups by way of equity |
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Hiring
of employees |
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Audit
& Documentation |
No
need for complex |
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Residency
Limit |
From
180 days to 120 days |
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Who
can start |
Earlier
only Indian Citizen were allowed to start OPC, now even NRI |
A Start Up can be launched by any Indian
citizen under the age of 30 ( covering roughly 65 % of our population ) |
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Max/Min
Paid-up Capital Requirement |
No
more thresholds / Unlimited Growth / No min capital requirement of Rs 1 lakh |
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Conversion |
Can
convert into any type of company, at any time / Flexibility to keep it as an
OPC or convert to Pvt Ltd Co / Bring in other Shareholders / offer ESOPs / No
mandatory dilution of the Founder’s Equity / No need to find a Partner |
Instead of Companies Act - 1956 , these Start
Ups will be governed by the Start Up Act - 2015 |
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Who
will OPC help ? |
Unorganized
micro businesses |
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Process |
Just
register the OPC with RoC / No need for a MOU / hiring Auditors – Company
Secretary / doing bi-annual Audits / holding Board Meetings / Ensuring
quorums / Staff |
A Start Up will need to register online on
the web site of the Income Tax Department and obtain a unique
" Start Up Number " |
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Corporate
Tax Payable |
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Although all Start Ups will need to file
annual Income Tax returns ( with full disclosure of income / expenses /
profits / sources of funds etc ) , it will not be required to pay
any Corporate Income Tax for the first 10 years of its existence There will be no restrictions on what interest ( on
loans / FDs ) that a Start Up may pay nor any restrictions
on dividends it may declare The dividends
declared by Start Ups will not attract any Income Tax |
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