The government has taken various legislative measures to further ease of doing business. Take a look!
1. Insolvency and Bankrupt code 2016 (IBC) and further amendment removed certain difficulties in the insolvency resolution process and strengthened Corporate Insolvency Resolution Process (CIRP).
2. Increasing the threshold of default under the IBC, 2016 from 1 lakh to 1 crore for corporates in the light of COVID-19 under PM Garib Kalyan Package.
3. IBC (Amendment) Act 2020 provides temporary suspension of initiation of CIRP and brings relief to companies affected by COVID-19.
4. Creation of Institutions- NCLT, NCLAT, NFRA, IBBI, and IEPFA as specialized/appellate tribunal for corporate dispute resolution and discharge of several duties for expeditious disposal of cases.
6. Companies (Amendment) Act 2019 strengthens enforcement Agencies and de-clogging of National Company Law Tribunal and special courts.
7. Decriminalization of technical and procedural violation under companies Act, 2013 and reducing the burden on criminal courts and NCLT.
8. For Small Companies, the Threshold for paid-up capital revised from not exceeding ₹50 lakh to not exceeding ₹2 crores and turnover revised from not exceeding ₹2 crorepatis to nit not exceeding ₹20 crores.
9. One Person Companies (OPCs) rules amended: OPCs to grow without any restrictions on paid-up capital and turnover residency limit set up an OPC reduced from 182 to 120 days, allowing NRIs to incorporate OPCs in India.