×

UPSC Courses

DNA banner

DAILY NEWS ANALYSIS

  • 07 February, 2021

  • 5 Min Read

Budget Announcement for One Person Companies

Finance Minister Nirmala Sitharaman announced measures to ease norms on setting up one-person companies (OPCs).

What is a one-person company?

  • A one-person company is a company that can be formed by just one person as a shareholder

How are they different from other companies?

  • These companies are different to private companies which require a minimum of two members to establish.
  • the person and the company are considered separate legal entities. In sole proprietorship, the owner and the business are considered the same.
  • In a one-person company, the sole owner’s liability is limited to that person’s investment whereas in a sole proprietorship the owner has unlimited liability as they are not considered different legal entities.
  • OPCs do not need to conduct an annual general meeting, which is a requirement for other companies.
  • A one-person company also does not require signatures of both its company secretary and director on its annual returns. One is enough.

The concept was introduced in the Companies Act of 2013 based on the suggestions of the J.J. Irani Committee Report.

What has been proposed in the budget for OPCs?

  • An earlier rule that a one-person company would cease to have that status once its paid-up share capital exceeds ?50 lakh or its average turnover for the preceding three years exceeds ?2 crore, has been lifted.
  • Residency limit for an Indian citizen to set up an OPC has been reduced from 182 days to 120 days.
  • Non-Resident Indians (NRIs) are allowed to incorporate OPCs in India.

Source: TH


Sun, Solar Missions & Solar Phenomenon

Sun, Solar Missions & Solar Phenomenon Context: This topic is important for UPSE Prelims and Mains GS Paper3. Aurora An aurora also known as the polar lights or aurora polaris, is a natural light display in Earth's sky, predominantly seen in high-latitude regions (around the Arctic&nb

Changes in the Prompt Corrective Action norms for bank

Changes in the Prompt Corrective Action norms for banks Context: This topic is important for UPSE GS Paper 3. What will commercial banks under scrutiny need to do to get out of the restrictions imposed by the central bank? The story so far: The RBI issued a notification on November 2 revising norms for commercial banks to be placed under t

Study on Countries’ commitment on Climate Change

Study on Countries’ commitment on Climate Change Context: This topic is important for UPSE GS Paper 3. The findings, while optimistic, come amidst the deliberations underway at Glasgow. How effective are climate change pledges made by countries in containing global warming?  A study published Friday in the journal Science fin

National Investment and Manufacturing Zones (NIMZ)

About National Investment and Manufacturing Zones (NIMZ) The Government of India (GoI) has announced a National Manufacturing Policy, 2011, with the objective of enhancing the share of manufacturing in GDP to 25% within a decade and creating 100 million jobs. NIMZs are one of the important instruments to achieve it. As per the Policy, &ldqu

International Financial Services Center (IFSC)

What is an International Financial Services Center (IFSC)? An IFSC caters to customers outside the jurisdiction of the domestic economy.  Such centres deal with flows of finance, financial products and services across borders.  London, New York and Singapore can be counted as global financial centres.  The&n

Students Achievement

Search By Date

Newsletter Subscription
SMS Alerts