MCA vide Notification No. G.S.R. 91 dated 01/02/2021 has issued Companies (Incorporation) Second Amendment Rules, 2021 which will come into effect form 1st April, 2021, thereby further amending Companies (Incorporation) Rules, 2014 wherein,

• In Rule 3(1), the criteria for a natural person to be resident in India for incorporating OPC & be a nominee is relaxed by adding the words “whether resident in India or otherwise” at the place of “and resident in India”. Explanation 1 of this rule is also amended wherein the term “resident in India” means a person who has stayed in India for a period of not less than 120 days during the immediately preceding financial year. Further, sub-rule (7) of rule 3 about conversion is omitted.
• Rule 6 – Conversion of One Person Company into a Public company or a Private company is substituted by a new one stating procedure for conversion.
• In Rule 7(1) & 7(4)(i), the specification of limits of small company i.e. the words ‘paid up share capital of fifty lakhs rupees or less and average annual turnover of two crore rupees or less’ is omitted.
• In the annexure, e-form INC-5 is omitted and e-form INC-6 is substituted.

The said Notification can be accessed through the following link: MCA_Notif_GSR.91(E)_01.02.2021_Co.(Incorporation) Second Amendment Rules, 2021