Tribune News Service
New Delhi, September 16
The Ministry of Corporate Affairs (MCA) has revised the definition of small companies under the Companies Act, 2013 by increasing the threshold for paid-up capital from “not exceeding Rs 2 crore” to “not exceeding Rs 4 crore” and turnover from “not exceeding Rs 20 crore” to “not exceeding Rs 40 crore”.
The move aims to facilitate ease of doing business further and reduce compliance burden on small companies, said an official statement.
Move to facilitate ease of doing biz
The threshold for paid-up capital has been increased from “not exceeding Rs 2 crore” to “not exceeding Rs 4 crore”The threshold for turnover has been increased from “not exceeding Rs 20 crore” to “not exceeding Rs 40 cr”
“Small companies represent the entrepreneurial aspirations and innovation capabilities of lakhs of citizens. The government has always been committed to taking measures which create a more conducive business environment for law-abiding companies, including reduction of compliance burden on such companies, the statement added.
The statement said in the past the compliance burden of small companies has been reduced by a number of measures such as dispensing with the requirement to prepare a cash flow statement, abridged annual return and doing away with mandatory rotation of the auditor. In addition, they need to hold just two Board meetings in a year and the annual return can be filed by a director if there is no company secretary.
(This story has not been checked by JK Mega and is auto-generated from other sources)