More than 200,000 companies will have reduced compliance burden following a change in the definition of small companies announced in the Union Budget 2021-22 in terms of fewer compliances, and lower filing fees and penalties. The budget has raised the threshold of paid-up capital for small companies from Rs 50 lakh to Rs 2 crore and turnover from Rs 2 crore to Rs 20 crore. Companies falling under this definition would not have to prepare cash flows as part of financial statements and would need to hold only two board meetings a year. While other companies must provide details of remuneration to directors and key managerial personnel, small companies have to give details of the only aggregate amount of remuneration drawn by directors in their annual returns. Mandatory rotation of auditors would also not be required.
Hon’ble Speaker,
I present the Budget for the year 2021-2022.
1. Honourable Speaker, the preparation of this Budget was undertaken in circumstances like never before. We knew of calamities that have affected a country or a region within a country, but what we have endured with COVID-19 through 2020 is sui generis.
2. When I presented the Budget 2020-21, we could not have imagined that the global economy, already in throes of a slowdown, would be pushed into an unprecedented contraction.
3. We could not have also imagined then that our people as those in other countries would have to endure the loss of near and dear ones and suffer hardships brought about due to a health crisis.
Highlights
Finance Minister proposed reforms for small companies and MSMEs to strengthen Startup ecosystem.
The Finance Minister proposed to take up decriminalisation of the Limited Liability Partnership (LLP) Act, 2008
The Government will launch data analytics, artificial intelligence, machine learning-driven MCA21 Version 3.0.
New Delhi: Union Minister for Finance & Corporate Affairs Nirmala Sitharaman presented the Union Budget FY 2021-22 in the lower house of the parliament on Monday (February 1). Finance Minister proposed reforms for small companies and MSMEs to strengthen Startup ecosystem while presenting Union Budget 2021-22 in Parliament.
Decriminalisation of the Limited Liability Partnership (LLP) Act, 2008
The Finance Minister proposed to take up decriminalisation of the Limited Liability Partnership (LLP) Act, 2008 on similar lines of the decriminalising of the procedural and technical compoundable offences under the Companies Act, 2013, which is now complete.
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Budget 2021 NRIs will soon be able to float one person companies
Seeking to further improve the ease of doing business, Finance Minister Nirmala Sitharaman on Monday said NRIs will be allowed to set up one person companies, definition of small companies will be revised and various provisions of the Limited Liability Partnership (LLP) Act will be decriminalised. The proposed relaxations to rules governing One Person Companies (OPCs) are expected to benefit startups and innovators.
Dedicating a separate portion of her 2021-22 Budget speech to company matters, Sitharaman said in the next fiscal year, MCA 21 portal will be driven by data analytics, artificial intelligence and machine learning features as well as have additional modules such as for e-adjudication and compliance management.
Union Budget 2021: Here is Full Text of Nirmala Sitharaman s Address at the Parliament
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Introduction
Honourable Speaker, the preparation of this Budget was undertaken in circumstances like never before. We knew of calamities that have affected a country or a region within a country, but what we have endured with COVID-19 through 2020 is sui generis. RELATED NEWS
When I presented the Budget 2020-21, we could not have imagined that the global economy, already in throes of a slowdown, would be pushed into an unprecedented contraction.
We could not have also imagined then that our people as those in other countries would have to endure the loss of near and dear ones and suffer hardships brought about due to a health crisis.