28/04/2014
Small Company in the Companies Act, 2013
The concept of “small company” has been introduced for the first time in the Companies Act, 2013. Here we take a look at the definition and what relaxations has been afforded to a small company under the Companies Act, 2013.
Section 2(85) defines a Small company as
‘‘small company’’ means a company, other than a public company,—
(i) 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 five crore rupees; or
(ii) turnover of which as per its last profit and loss account does not exceed two crore rupees or such higher amount as may be prescribed which shall not be more than twenty crore rupees:
Provided that nothing in this clause shall apply to—
(A) a holding company or a subsidiary company;
(B) a company registered under section 8; or
(C) a company or body corporate governed by any special Act
