CS Divesh Goyal
Quick Summary
SHORT SUMMARY In exercise of the powers conferred by sub-sections (1) and (2) of Section 469 of the Companies Act, 2013(CA, 2013), the Central Government, videNotification GSR 700(E) dated 15th September2022 has amended the Companies (Specification of Definitions Details) Rules, 2014 which shall
Daily Limit Reached
You have reached your daily limit of 2 Free Articles
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited Articles Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
As of 15th September 2022, a Small Company is defined as a company, other than a public company, with a paid-up share capital not exceeding ₹4 Crore and a turnover not exceeding ₹40 Crore as per its last profit and loss account.
A company automatically becomes a 'non-small' company when it crosses the defined limits for paid-up share capital or turnover. No specific form is required to be filed for this transformation.
Small Companies benefit from fewer mandatory board meetings (two per year instead of four), exemption from CARO reports, no requirement for a Cash Flow Statement, simplified e-form certifications, an abridged Director's Report, no Internal Financial Controls reporting, lesser penalties for non-compliance, and exemption from auditor rotation rules.
Yes, only a Private Company can be classified as a Small Company. Public Companies, Section 8 Companies, and holding or subsidiary companies (even if they meet the financial limits) cannot be classified as Small Companies.
Small Companies and their officers in default are liable to a penalty that is not more than one-half of the penalty specified in the relevant provisions, capped at ₹2 Lakh for the company and ₹1 Lakh for an officer.
CAclubindia
