Budget 2021: Capital base of small firms raised from Rs 50 lakh to Rs 2 crore

Image Source : PTI Finance Minister Nirmala Sitharaman
The authorities on Monday stated the definition of small firms can be revised by elevating the capital base to Rs 2 crore from the present restrict of Rs 50 lakh. In the Union Budget for 2021-22, Finance Minister Nirmala Sitharaman proposed organising of investor constitution throughout monetary merchandise.
She stated an asset reconstruction and administration firm can be arrange for pressured belongings of banks, whereas additionally stating that the National Company Law Tribunal (NCLT) framework can be strengthened.
Hardika Shah, Founder and CEO Kinara, stated that the proposal made by the Finance Minister for small firms underneath the Companies Act, 2013, is a welcome transfer. 

“The reduction of custom duty on raw materials for several sectors will help going forward. Digital payments, Textile Parks, and Socialization of the gig economy are effective moves to give a further fillip to the pace of last-mile digital transformation and financial inclusion,” Shah stated.
Satya Yerramsetti of Telebu stated that enlarging the definition of small firms will present thrust to the benefit of doing enterprise, ease of compliance, ease of dwelling, and pave the way in which for aatmanirbhar and resilient India
Rajiv Kumar, the founding father of StoreHippo, stated that the elevated restrict of turnover to qualify as a small firm will profit many small companies, notably those that suffered losses in the course of the pandemic.
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