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Previously, Ministry of Corporate Affairs by notification number G.S.R. 464(E) dated 5th June, 2015 has given several exemptions to Private Companies. MCA via notification number G.S.R. 583(E) dated 13th June, 2017 has added few more exemptions by amending the notification dated 5th June, 2015.


Following are the amendments to the exemption notification dated 5th June, 2015 issued to Private Companies:


Applicable section

Companies covered

Nature of exemption


Section 2(41) - financial statement

One Person Company (OPC)
Small Company
Dormant Company
Start-up Private Company*

*'start-up' or "start-up company" means a private company incorporated under the Companies Act, 2013 or the Companies Act, 1956 and recognised as start-up in accordance with the notification issued by the DIPP and Ministry of Commerce and Industry."

Financial statement of these companies need not include cash flow statements.


Section 73(2) clause (a) to (e)- Prohibition on acceptance of deposits from public

Private company

  • Which has accepted monies from members not exceeding 100 % of PC+FR + SP


  • Start up for five years from date of incorporation


Any private company:

  • Which is not an associate/subsidiary of any other company &
  • Borrowings from Bank / Financial institution/ Body corporate <2 (Paid up capital) /50 Crore w.e.f &
  • Not defaulted in repayment of borrowings at the time of acceptance

Compliance with following is exempted:

  1. Issuing circular to the members and filing of the copy of the circular along with the statement with ROC
  2. Depositing money in repayment reserve account
  3. Provision for deposit insurance
  4. Certification that the company has not committed default in repayment of deposit and payment of interest.


Section 92(1)(g) - Annual return

Private companies which are small companies

Disclosure of aggregate amount of remuneration drawn by directors instead of disclosing the remuneration drawn by Directors and KMP.


Section 92(1) - Annual return

Start-up Company

Annual return of the start-up company in addition to One Person Company and Private company can be signed by Company secretary where there is no Company secretary then by the director of the company.


Section 143(3)(i)- Powers and duties of auditors and auditing standards

Private company -

  • which is OPC or small company or
  • turnover < Rs. 50 Cr (as per latest audited financial or which has aggregate borrowings < Rs. 25 Cr (from banks or financial institutions or body corporate at any point of time during the financial year)

The auditor's report need not state whether the company has adequate internal financial control systems in place and operating effectiveness of such control.


Section 173(5)- Meetings of the Board

Start-up Company

Start-up Company in addition to One Person Company, small company and dormant Company it will be deemed as compliance if at least one meeting of the Board of Directors has been conducted in each half of a calendar year and the gap between the two meetings is not less than ninety days.


Section 174(3)- Quorum for meetings of Board

Private Company

Interested Director may be counted towards quorum in Board meetings after disclosure of his interest in accordance with Section 184 of the Act.

The author can also be reached at cskavithajain@gmail.com


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kavitha jain
Category Corporate Law   Report

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