Quick Summary
In line with the vision of the Government of India, the definition under the Companies Act, 2013 for Small Companies has now been revised by increasing their thresholds for Paid up capital from not exceeding Rs 50 lakh to not exceeding Rs 2 crore Turnover from not exceeding Rs 2 crore to not exceed
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FAQ :
A company is now considered 'Small' if its paid-up capital does not exceed ₹2 crore and its turnover does not exceed ₹20 crore.
Previously, a 'Small Company' was defined as one with paid-up capital not exceeding ₹50 lakh and turnover not exceeding ₹2 crore.
More than two lakh companies are expected to benefit from the revised definition.
Benefits include no requirement to prepare a Cash Flow Statement, simplified remuneration disclosure for directors, no mandatory auditor rotation, and auditors not needing to report on internal financial controls.
Yes, small companies are now only required to hold two board meetings in a year.
The Annual Return can be signed by the Company Secretary, or if there is no Company Secretary, by a single director.
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