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Wednesday, 18 November 2015

Small Company under Companies Act 2013

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As per the Companies Act, 2013 "small company" is defined as
u/s 2(85): Small Company
‘‘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;

To summarise: Small Company is
A Company with Paid Up Share Capital ≤  ₹ 50 Lakhs (Including Preference Shares)
A Company with Turnover ≤ ₹ 2 Crores

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