Finance Minister Nirmala Sitharaman announced in the Union Budget 2021 that the government would soon introduce a newer version of the MCA21 (MCA21 V3) in order to promote its ease of doing business initiative. Further, there have been news reports that the government is planning to launch a mobile app for corporate filings in order to reduce the compliance burden on companies in India. MCA21 V3 is being rolled out in two phases, with the first phase having been rolled out on 24 May 2021.
The Companies Act 2013 defines a 'producer company' as a body corporate which, among other things, carries on or has an objective relating to certain specified activities. This article sets out the key features of producer companies, including with respect to share capital, voting rights, directors, general meetings and general reserves.
The Ministry of Corporate Affairs recently amended the Companies Act 2013 and the Companies (Corporate Social Responsibility Policy) Rules 2014, introducing a plethora of changes to the act's corporate social responsibility (CSR) provisions. The amended provisions will ensure that companies which fall under their purview spend the requisite amount on CSR activities rather than just explaining why they have not done so and avoiding any consequences.
In order to improve limited liability partnership (LLP) compliance and regulate the designated partners of LLPs, the Ministry of Corporate Affairs recently stated that it will extend certain sections of the Companies Act 2013 to the Limited Liability Partnership Act and therefore LLPs. It is surprising that the LLP structure, which was introduced by the government to relax and ease the process of setting up small businesses, is now pushing the same small enterprises towards a stricter compliance regime.
When the Companies Act 2013 entered into force, the concept of 'one-person companies' ('OPCs') was introduced. New amended rules recently entered into force and provide that natural persons who are Indian citizens, whether resident in India or not, can incorporate OPCs in India. This move has been highly welcomed by start-ups and innovators as it will boost the entrepreneurial capabilities of non-resident Indians and overseas citizens of India and help them to enter the Indian market.