Small company

Co Act 2013 340 views 3 replies

anu

B.Com

87 Points Posted on 25 July 2018

Section 2(85) defines a Small Company as – ‘‘small company’’ means a company, other than a public company,— (i) paid-up share capital of which does not exceed fifty lakh rupees or such higher amount as may be prescribed which shall not be more than five crore rupees; or
Turnover of which as per its last profit and loss account does not exceed 2 crore rupees or such higher amount as may be prescribed which shall not be more than 20 crore rupees.

Here I have a doubt regarding paid up share capital of such higher as may be prescribed which shall not exceed five crore rupees. What does it mean ....if a private company holding paid up share capital of Rs.3 crore can avail the status of small company?

Replies (3)

CA Sunil Kumar

Chartered Accountant

4524 Points Posted on 25 July 2018

No, private company having paid up share capital of Rs. 3 crore cannot be considered a small company. Higher limit of capital will be notify by central government by issuing a notification.Till today , CG has not notify higher share capital.

Jatin Bajaj

2942 Points Posted on 25 July 2018

As per the defination of Small Company, you need to qualify both the conditiuons. Paid up share capital of the Company shall not exceed 50 lakhs rupees and turnover shall not exceed 2 crores rupees as per the latest audited balance sheet. As may be prescribed means if the Government if by any notification in the official gazatte alter such limit, then maximum such limit would be 5 crores and for turnover it would be 20 crore. But till now govt has not issued any notification till date

Anush Ram

160 Points Posted on 25 July 2018

thank you @ anu for making such doubt!
thank you @ CA Sunil Kumar and jatin bajaj for answering!!!
yeah the""""" Paid up share capital of the Company shall not exceed 50 lakhs rupees and turnover shall not exceed 2 crores rupees as per the latest audited balance sheet."""""
until Feb 2015 it was """"or""""" not conditional right!!!