 "INSOLVENCY, IBC, Companies, audit, nclt")
Encouraging start-ups
Issue
Start-ups have borne a huge brunt of the economic devastation caused by the pandemic. Further, despite the emphasis on innovation, a large number of start-ups tend to fail due to funding crunch, tax burden, rigid compliances, and technology related reasons, among others.
Impact
NRIs are now allowed to incorporate One Person Company (OPC) and grow without any restriction on the paid-up capital and turnover, allowing their conversion into any type of company at any time. This should nudge India upwards on the Ease of Doing Business Index. The measures are envisioned to encourage founders to incorporate a
