The government has revised the Paid up Capital and Turnover Criteria Revised for Small Companies to Four crore as paid up capital and 40 crore as turnover.
Small Companies under Companies act enjoy less compliance burden as compared to normal Companies.
The major benefit are available for Small Company
- No need to prepare Cash Flow Statement
- No Annual Return Signing from Company Secretary
- No Certification on E forms by Professionals
- Less Disclosure in Director Report
- Abridged Annual Return in form MGT7A
- No internal Financial Control reporting in Auditor Report by Auditor
- Holding of Two Board Meetings etc
Please note that following Companies are not included in the definition of Small Company
- Public Company
- Holding company or a subsidiary company
- Section 8 Company
- Company or body corporate governed by special act (LIC) (SBI)