Budget 2021: One-person company to propel entrepreneurship, say experts

Concept is attractive as it eradicates need for cumbersome practices like board meetings and financial statement inclusions; Changes introduced may benefit some 200,000 firms

The Budget proposal to allow forming One-Person Company (OPC) will propel entrepreneurship in the country, according to experts. 

OPC is attractive as it eradicates the requirement of traditional time-consuming and cumbersome methodologies like board meetings and financial statement inclusions. “The changes introduced can possibly benefit about 200,000 companies in India in easing their compliance requirements, as earlier with the threshold of existing as an OPC was lower, having to convert to a private or public limited company meant more restrictions on the company’s trade and practices,” said Salman Waris, managing partner at specialist technology law firm TechLegis Advocates & Solicitors.