What is Small Company?
As per Section 2(85) of the Companies Act, 2013, a Small Company, other than public company, means a company where the:
- Paid-up Share Capital
paid-up share capital of the company does not exceed INR 50 Lakhs or such higher amount as may be prescribed which shall not be more than five crore rupees; and
turnover as per its last profit and loss account does not exceed 2 Crores or such higher amount as may be prescribed which shall not be more than twenty crore rupees:
Note: No higher amount has been prescribed as yet.
- The following Companies are not considered as a Small Company
Further, holding company, subsidiary company, company registered under Section 8 or a company or body corporate governed by any special act will not be considered as a small company.
- proposed Companies Amendment Bill, 2016
However, as per the proposed Companies Amendment Bill, 2016 which is yet to be notified, the limit of paid up capital and turnover is proposed to be increased to INR 10 Crores and INR 100 Crores respectively…