Tax Management India. Com
                        Law and Practice: A Digital eBook ...
TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms SMS News Articles
D. Forum
What's New


Discussions Forum
Home Forum Corporate Laws / SEBI / LLP This
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.

Submit new Issue / Query

← Previous Next →

Small company as per Company Act., Corporate Laws / SEBI / LLP

Issue Id: - 115717
Dated: 28-11-2019
Small company as per Company Act.

  • Contents

We have paid up capital ₹ 30.00 Lakhs and Turnover in last financial year is 25-00 crore, whether we will be small company as per section 2(85) of company Act.

please explain in details with any amendment in law.

Post Reply

Posts / Replies

Showing Replies 1 to 2 of 2 Records

1 Dated: 14-2-2020

As per the definition if the turnover is more than ₹ 2 crores, a company will not fall under small company u/s 2(85).

2 Dated: 23-2-2020
By:- sarojni singh

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 the 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 Companies 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 prescribed 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 turnover 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 details.

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 provision does not apply to such companies.


Post Reply

← Previous Next →

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Site Map - Recent || Site Map || ||