AMENDMENTS

Amendment in
Companies Act, Earlier provision New provision
2013
Resident in India Only a natural person who Only a natural person who
in One Person is an Indian citizen and is an Indian citizen whether
Company: resident in India (person resident in India or
Substituted by who has stayed in India for otherwise and has stayed in
Companies a period of not less than India for a period of not
(Incorporation) 182 days during the less than 120 days during
Second immediately preceding the immediately preceding
Amendment financial year)- financial year)-
Rules, 2021, • shall be eligible to • shall be eligible to
w.e.f. 1-4-2021. incorporate a OPC; incorporate a OPC;
• shall be a nominee for the • shall be a nominee for the
sole member of a OPC. sole member of a OPC.
 Amendment
in Companies Earlier provision New
Act, 2013 provision
Conversion of OPC cannot convert Omitted
OPC to other voluntarily into any kind of
company: company unless two years
Omitted by have expired from the date of
Companies incorporation, except where
(Incorporation) the paid up share capital is
Second increased beyond fifty Lakhs
Amendment rupees or its average annual
Rules, 2021, turnover during the relevant
w.e.f. 1-4-2021.] period exceeds two Crores
rupees.
 Amendment in
Companies Act, Earlier New provision
2013 provision
Small Company - For the purpose of
[Section 2(85)]: sub-clause (i) and sub-
Inserted by clause (ii) of clause
Companies (85) of section 2 of the
(Specification of Act, paid up capital
Definitions and turnover of the
Details) small company shall
Amendment Rule, not exceed rupees
2021, w.e.f. 1-4- two crores and rupees
2021. twenty crores
respectively.
 Amendment
in Companies Earlier New provision
Act, 2013 provision
Definition of Listed Listed company" means a
Listed company" company which has any of its
Company means a securities listed on any
[Section company recognized stock exchange:
2(52)]: which has any Provided that such class of
Inserted by of its securities companies, which have listed or
the listed on any intend to list such class of
Companies recognized securities, as may be prescribed
(Amendment) stock in consultation with the
Act, 2020, exchange. Securities and Exchange Board,
w.e.f. 22-1- shall not be considered as listed
2021. companies.
Amendmen
t in
Companies Earlier provision New provision
Act, 2013
Penalty/punishment Penalty/punishment in
Section in contravention: If a contravention: If a company
8(11) company makes any makes any default in complying
Substituted default in complying with any of the requirements
by the with any of the laid down in this section, the
Companies requirements laid company shall, without
(Amendmen down in this section, prejudice to any other action
t) Act, 2020, the company shall, under the provisions of this
w.e.f. 21-12- be punishable with section, be punishable with fine
2020. fine varying from which shall not be
ten lakh rupees to less than ten lakh rupees
one crore rupees
 Amendment
in Companies Earlier provision
Act, 2013
and the directors and every
Section 8(11) officer of the company who is
in default shall be punishable
Substituted with imprisonment for a term
by the which may extend to three
Companies years or with fine varying
(Amendment) from twenty-five thousand
rupees to twenty-five lakh
Act, 2020, rupees, or with both and
w.e.f. 21-12- where it is proved that the
2020. affairs of the company were
conducted fraudulently, every
officer in default shall be
liable for action under section
447 which deals with Fraud.
New provision
but which may extend to
one crore rupees and the
directors and every officer
of the company who is in
default shall be punishable
with fine which shall not be
less than twenty-five
thousand rupees but Which
may extend to twenty-five
lakh rupees: Provided that
when it is proved that the
affairs of the company were
conducted fraudulently,
every officer in default shall
be liable for action under
section 447.