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Small Company -Help!

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Sreekanth

79 Points Posted on 26 August 2022

1. When two small companies are associate companies of each other, will they still be considered small companies?

2. Applicability of the revised Turnover of Rs 20 crores and Paid up Capital of Rs 5 crores effective from which financial year? Is it applicable if company was NOT a small company in FY 2020-21 i.e Turnover above 2 crores but satisfies the conditions in FY 2021-22 i.e Turnover below 20 crores.

Any insight into the above will be gladly appreciated!

Replies (2)

Quick Summary

This discussion clarifies the definition of a 'small company' in the UK, particularly concerning associate companies. It addresses the applicability of the revised turnover threshold of £20 crores and paid-up capital of £5 crores, confirming its effectiveness from the financial year 2021-22. The advice highlights that holding or subsidiary companies are not considered small, and the criteria can change annually, with the new rules applying from FY 2021-22 onwards.

prasad Nilugal

GST Practitioner & Accounts

15140 Points Posted on 26 August 2022

Recommended in budget 21 , and effective from 1/4/2021( please confirm from finance Act 21) for small companies turnover 20 crore and paid up Capital 5 crore .
Holding or subsidary companies will not be treated as small companies and For F.Y 20-21 criteria was different for small Companies.

Chirag

Professional

1979 Points Posted on 30 August 2022

Status may change every year ,Viz upto FY 20-21 it's old threshold and from FY 21-22 New Criteria,Without specific provision in act ,company may be small for one year and Not for another year ,but additional compliances based on criteria have specific wordings on the statute..

As mentioned , Holding and Subsidiaries,Section 8 company ,body corporate and company governed by any special act