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Companies Act, 2013--Union Budget, 2021-22

Impact of Union Budget, 2021 vis-a-vis theCompanies Act, 2013

Pragya Lalwani

The Finance Minister of India presented a Digital UnionBudget 2021-22 on 1st February, 2021 with path-breaking changes under certain legislations.This article highlights the amendments made under the Companies Act, 2013 inlight of the Union Budget, 2021-22.

1. Introduction

The Finance Minister, Nirmala Sitharaman has unveiled theUnion Budget for the fiscal year 2020-2021 which has its impact on several Actsand legislations. Apart from Income Tax Act, 1961 and GST Act, it incorporatesvarious amendments in the Companies Act, 2013 with a object of liberatingcompliance requirements and to boost the ease of doing business in India.It has its impact on small companies enjoying certain benefits over othercompanies in terms of compliance requirements and start-ups to be recognised assmall companies. It allows OPCs to be incorporated without any restrictions andcan be converted into any kind of company at any time.