{"id":2062,"date":"2021-02-06T09:26:10","date_gmt":"2021-02-06T09:26:10","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=2062"},"modified":"2021-02-06T09:26:13","modified_gmt":"2021-02-06T09:26:13","slug":"companies-incorporation-second-amendment-rules-2021-notified-by-mca","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/companies-incorporation-second-amendment-rules-2021-notified-by-mca\/","title":{"rendered":"Companies (Incorporation) Second Amendment Rules 2021 Notified By MCA"},"content":{"rendered":"\n<p class=\"has-drop-cap\">In view of the Pragmatic,\nForward Looking, and Strategic Vision, the Union Finance Minister, Ms Nirmala\nSitharaman, has announced amendment in the provisions concerning the <strong><a href=\"https:\/\/swaritadvisors.com\/one-person-company-registration\" class=\"text-primary\">One Person Company<\/a><\/strong>,\nby way of the Union Budget 2021. The said amended rules will be known as the\nCompanies (Incorporation) Second Amendment Rules 2021, and will come into effect\nfrom 01.04.2021.<\/p>\n\n\n\n<p>In this blog, we\nwill discuss in details the changes bought by the Companies (Incorporation)\nSecond Amendment Rules 2021.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3aa7533c1fd\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3aa7533c1fd\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/companies-incorporation-second-amendment-rules-2021-notified-by-mca\/#Concept_of_One_Person_Company\" title=\"Concept of One Person Company\">Concept of One Person Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/companies-incorporation-second-amendment-rules-2021-notified-by-mca\/#Reasons_for_Amending_Companies_Incorporation_Rules_2014\" title=\"Reasons for Amending Companies (Incorporation) Rules 2014\">Reasons for Amending Companies (Incorporation) Rules 2014<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/companies-incorporation-second-amendment-rules-2021-notified-by-mca\/#Key_Amendments_Made_in_Companies_Incorporation_Second_Amendment_Rules_2021\" title=\"Key Amendments Made in Companies (Incorporation) Second Amendment Rules\n2021\">Key Amendments Made in Companies (Incorporation) Second Amendment Rules\n2021<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/companies-incorporation-second-amendment-rules-2021-notified-by-mca\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/companies-incorporation-second-amendment-rules-2021-notified-by-mca\/#Copy_of_the_Official_MCA_Notification\" title=\"Copy of the Official MCA Notification\">Copy of the Official MCA Notification<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_One_Person_Company\"><\/span>Concept of One Person Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term One\nPerson Company denotes a new age business entity, that has been defined under\nsection 2 (62) of the Companies Act 2013. Further, the main aim behind the introduction\nof the concept of One Person Company was to increase the level of start-ups and\ninvestments in the market, which directly benefited the embryonic\nentrepreneurs, as this business structure provides all the benefits of a <strong><a href=\"https:\/\/swaritadvisors.com\/private-limited-company-registration\" class=\"text-primary\">private\nlimited company<\/a><\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reasons_for_Amending_Companies_Incorporation_Rules_2014\"><\/span>Reasons for Amending Companies (Incorporation) Rules 2014<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The reasons\nbehind the amendment of the provisions of the Companies\n(Incorporation) Rules 2014 can be summarised as:<\/p>\n\n\n\n<ul><li>To provide direct benefits to Start-up and Innovation sector of the country; and <\/li><li>To bring in more unincorporated business in the organised sector.<\/li><\/ul>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/mca-amends-the-definition-of-small-companies\/\">MCA Amends the Definition of Small Companies<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Amendments_Made_in_Companies_Incorporation_Second_Amendment_Rules_2021\"><\/span>Key Amendments Made in Companies (Incorporation) Second Amendment Rules\n2021<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The key amendments made in Companies (Incorporation)\nSecond Amendment Rules 2021 are as follows:<\/p>\n\n\n\n<ul><li>Based on the provision of Rule 3 Sub Rule 1, earlier NRIs were not allowed to start a One Person Company in India. However, MCA has amended the said provision, and on the basis of new provisions, any Natural Person, who is an India Citizen, whether being a Resident in India or otherwise will now be allowed to form a One Person Company in India;<\/li><li>As per the amended regulations, to be considered as an Indian Resident, an NRI needs to be present in India for at least 120 days instead of 182 days;<\/li><li>MCA has omitted the provisions concerning the voluntary conversion of the one person companies that have completed a period of two, starting from the date of incorporation. The said omission will come into from 01.04.2021. Further, as per the new regulations, conversion of an OPC into a Private Limited Company or Public Limited Company can be done at any time. Also, it shall be significant to state that an OPC can be converted into any form of business entity other than a <strong><a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/section-8-company-registration\">Section 8 Company<\/a><\/strong>. The same can be done by increasing the number of directors and shareholders as per the requirements of the business structure;<\/li><li>The restriction concerning the Paid up Capital and Annual Turnover on a One Person Company has been omitted by the Ministry of Corporate Affairs;<\/li><li>The Ministry of Corporate Affairs has rationalised the e-forms applicable to an OPC. The same has been done by omitting INC 5 and modifying INC 6. The e-form INC 6 is an application for the conversion of an OPC into a Public Limited Company or Private Company. The same will apply in the case of <strong><a href=\"https:\/\/swaritadvisors.com\/conversion-of-private-limited-company-to-opc\" class=\"text-primary\">conversion of a Pvt Ltd Company to OPC<\/a><\/strong> as well.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, to benefit the Start-ups and Innovators operating in the country, particularly those who are engaged in supplying products and services on e-commerce platforms, and to bring in more unincorporated businesses into the arena of organized corporate sector, <a href=\"http:\/\/www.mca.gov.in\/\">MCA<\/a> has decided to incentivize the incorporation of One Person Companies. The same has been done by amending the Companies (Incorporation) Rules 2014.<\/p>\n\n\n\n<p>The amended provisions will be known as the Companies (Incorporation) Second Amendment Rules 2021 and\nwill come into effect from 01.04.2021. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Copy_of_the_Official_MCA_Notification\"><\/span>Copy of the Official MCA Notification<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<a href=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/One-Person-Company-Amendment-Regulations-1.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">One-Person-Company-Amendment-Regulations-1<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/landmark-judgments-on-ipr-law-in-india\/\">Landmark Judgments on Intellectual Property Rights (IPR) Law in India<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In view of the Pragmatic, Forward Looking, and Strategic Vision, the Union Finance Minister, Ms Nirmala Sitharaman, has announced amendment in the provisions concerning the One Person Company, by way of the Union Budget 2021. The said amended rules will be known as the Companies (Incorporation) Second Amendment Rules 2021, and will come into effect [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":2063,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[50],"tags":[347],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2062"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=2062"}],"version-history":[{"count":9,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2062\/revisions"}],"predecessor-version":[{"id":2074,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2062\/revisions\/2074"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/2063"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=2062"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=2062"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=2062"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}