In a major relief to the start-up sector, the Union Finance Minister Nirmala Sitharaman has extended tax holidays for startups by one year, till March 2022.
Apart from the tax holiday, Sitharaman also informed that the government proposes to incentivise incorporation of one-person companies (OPCs), a move that will benefit startups and innovators.
Speaking further Finance Minister said the incorporation of OPCs will be incentivised by allowing such companies "to grow without restriction on paid-up capital and turnover, allowing conversion into any other type of company at any time, reducing the residency limit for an Indian citizen to set up an OPC from 182 days to 120 days, and allow also non-resident Indians to incorporate OPCs in India".
"This will be a big boost for startups," she said while presenting the first paperless Union Budget.
(With inputs from PTI)
