UNION BUDGET 2021 HIGHLIGHTS FOR CS COMMUNITY

*COMPANY MATTERS:*

To decriminalize the Limited Liability Partnership (LLP) Act, 2008

Easing Compliance requirement of Small companies by revising their definition under Companies Act, 2013 by increasing their thresholds for Paid up capital from “not exceeding Rs. 50 Lakh” to “not exceeding Rs. 2 Crore” and turnover from “not exceeding Rs. 2 Crore” to “not exceeding Rs. 20 Cr”.

Promoting start-ups and innovators by incentivizing the incorporation of One Person Companies (OPCs):

Allowing their growth without any restrictions on paid up capital and turnover

Allowing their 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

Allowing Non Resident Indians (NRIs) to incorporate OPCs in India.

*NCLT MATTERS:*

To ensure faster resolution of cases by

Strengthening NCLT framework

Implementation of e-Courts system

Introduction of alternate methods of debt resolution and special framework for MSMEs

Launch of data analytics, artificial intelligence, machine learning driven MCA21 Version 3.0 in 2021-22.

*PRIVATISATION:*

Rs. 1,75,000 crore estimated receipts from disinvestment in BE 2020-21

Strategic disinvestment of BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam limited etc. to be completed in 2021-22.

Other than IDBI Bank, two Public Sector Banks and one General Insurance company to be privatized

IPO of LIC in 2021-22

New policy for Strategic Disinvestment approved; CPSEs except in four strategic areas to be privatized.

NITI Aayog to work out on the next list of CPSEs to be taken up for strategic disinvestment 

Incentivizing States for disinvestment of their Public Sector Companies, using central funds

Special Purpose Vehicle in the form of a company to monetize idle and

Introducing a revised mechanism for ensuring timely closure of sick or loss making CPSEs