MCA lets NRIs in
The Ministry for Corporate Affairs (MCA) has amended ...
The Ministry for Corporate Affairs (MCA) has amended the rules to allow One Person Companies (OPC) to grow without any restrictions on paid up capital and turnover. An official statement said that the amendment would allow their conversion into any other type of company at any time, reduce the residency limit for an Indian citizen to set up an OPC from 182 days to 120 days and also allow Non-Resident Indians (NRIs) to incorporate OPCs in India.
According to the government, the move will directly benefit startups and innovators in the country, especially those who are supplying products and services on e-commerce platforms, and will bring in more unincorporated businesses into the organised corporate sector. In addition, the fast track process for mergers under the Companies Act, 2013 has also been now extended to also include mergers of startups with other startups and with small companies, so that the process of mergers and amalgamations is completed faster for such companies.