EXEMPTION NOTIFICATION FOR PRIVATE COMPANIES
INTRODUCTION:
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.
SNAPSHOT OF EXEMPTIONS:
Following are the amendments to the exemption notification dated 5th June, 2015 issued to Private Companies:
S.NO |
Applicable section |
Companies covered |
Nature of exemption |
1. |
Section 2(41) - financial statement |
One Person Company (OPC) *'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. |
2. |
Section 73(2) clause (a) to (e)- Prohibition on acceptance of deposits from public |
Private company
(or)
(or) Any private company:
|
Compliance with following is exempted:
|
3. |
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. |
4. |
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. |
5. |
Section 143(3)(i)- Powers and duties of auditors and auditing standards |
Private company -
|
The auditor's report need not state whether the company has adequate internal financial control systems in place and operating effectiveness of such control. |
6. |
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. |
7. |
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. |
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