Question

In the Union Budget 2021-22, the govt plans to allow the incorporation of one-person companies with no restriction on paid-up capital and turnover. Which of the following is true regarding this?
1. Non-resident Indians will also be allowed to incorporate one-person companies in India
2. This will boost revenues of big companies
3. The residency limit for an Indian citizen is reduced to set up an OPC from 182 days to 120 days
4. Only citizens of India will also be allowed to incorporate one-person companies in India
5. Only 1 and 3

Answer 1

Correct Answer - Option 5 : Only 1 and 3

The correct answer is Only 1 and 3

• The government said it proposes to incentivize the incorporation of one-person companies (OPCs), a move that will benefit startups and innovators.
• Finance Minister Nirmala Sitharaman said the incorporation of OPCs will be incentivized by allowing such companies "to grow without restriction on paid-up capital and turnover, allowing conversion into any other type of company at any time, reducing the residency limit for an Indian citizen to set up an OPC from 182 days to 120 days, and allow also non-resident Indians to incorporate OPCs in India". "This will be a big boost for startups," she said while presenting the first paperless Union Budget.