Exemption Regime for Small Companies, One Person Companies, Private Companies and Limited Liability Partnerships
The Standing Committee on Finance (SCF), which thoroughly examined The Companies Bill, 2009 has recommended that as the exemption regime applicable for different forms of companies like small companies, One Person Company (OPCs) and private companies is not very precise and explicit in the Bill, hence the Ministry of Corporate Affairs should examine this aspect so that the classification of companies and the exemption/concession regime to be made applicable for each of these forms of companies is clearly spelt out in the relevant provisions/clauses itself. It should thus be known from the statute which are the provisions that are applicable to these forms and in what way these forms are distinguishable from each other and the regular public limited company. The synchronization with the Limited Liability partnership ACT (LLP) and its implications for the provisions contained in the Bill should also be considered and modifications, if required, may be made accordingly, the SCF has recommended in its Twenty-First Report, presented to the Parliament recently.
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