Annual Compliance Calendar - Companies Act, 2013 SMALL COMPANY - Series - 477
Annual Compliance Calendar - Companies Act, 2013
In this Flash editorial, the author begins by referring the provisions of Companies Act, 2013 read with all Amendment Acts and rules mentioned there under till Companies (Amendment) Act, 2019.
Meaning of Small Company:
Section 2(85) defines a Small Company as –‘‘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
- Turnover 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 prescribed which shall not be more than one hundred 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
i. Only a private company can be classified as a small company
ii. If a Company doesn’t cross above mentioned limits, however such company is holding or subsidiary of any other company can’t be considered as Small Company.
iii. A Public Company can’t be Small Company.
iv. A Section 8 Company can’t be Small Company
Major Changes are as follow:
1. Directors’ Report: There are a lot of changes in Directors’ Report of a Small Company. By amendment in Companies Act, 2013 MCA has introduced abridged format of Directors’ Report for Small Company.
2. Annual Return (MGT-7): Annual Return is Form MGT-7. This is a very lengthy form. MCA has proposed abridged format of Annual Return for Small Company however, same not notified yet.