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TMI BlogSmall company as per Company Act.X X X X Extracts X X X X X X X X Extracts X X X X ..... Small company as per Company Act. X X X X Extracts X X X X X X X X Extracts X X X X ..... ent in law. Reply By VENKAT S: The Reply: As per the definition if the turnover is more than ₹ 2 crores, a company will not fall under small company u/s 2(85). Reply By sarojni singh: The Reply: Small company is a special status given to companies registered under Indian Companies Act, 2013 due to its scope of business, measured in terms of capital and turnover. The companies enjoying th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e status of small company enjoy certain benefits in form of exemption from applicability of provisions. To claim the status of the small company, it does not need to register a company in India; rather a company already registered and fulfilling provided conditions is known as a small company. To know what a small company is, it is best to refer the definition from the Act itself. As per Companie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Act, 2013, a Small company means a company, other than a public company, - paid-up share capital of which does not exceed fifty lakh rupees or such higher amount as may be prescribed which shall not be more than ten crore rupees; and turnover of which, as per profit and loss account for the immediately preceding financial year, does not exceed two crore rupees or such higher amount as may be p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rescribed which shall not be more than one hundred crore rupees: Provided that nothing in this clause shall apply to- > a holding company or a subsidiary company; > a company registered under section 8; or > a company or body corporate governed by any special Act; In the Act, it is stated that the company's paid-up share capital should not exceed 50 lakh rupees and along with that the turn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... over of the company should not exceed 2 crore rupees. Both the criteria are necessary to be fulfilled for a company to fall into the category of small company. With gradual growth of business, if company cross any of the thresholds provided, either for paid-up capital or turnover, the company must give up the status of the small company and the benefits granted for such companies. Check company d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etails. It is upfront from the definition, that a small company cannot be a public company i.e., only a private company can claim the status of the small company. Further, even though a private company fulfills both criteria, but it is a holding company, a subsidiary company, section 8 company or any other company governed by any Special Act, it cannot be declared as a small company as the said p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovision does not apply to such companies. X X X X Extracts X X X X X X X X Extracts X X X X
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