- paid-up share capital of which does not exceed Rs. 5 lakh or such higher amount as may be prescribed which shall not be more than five crore rupees; and
- turnover of which as per its last profit and loss account does not exceed Rs. 2 crore or such higher amount as may be prescribed which shall not be more than twenty crore rupees:
- a holding company or a subsidiary company;
- a company registered under section 8; or
- a company or body corporate governed by any special Act;
Benefits/Relaxations to Small Companies
- Financial Statement (Cash Flow Statement) - A small company is not required to include the cash flow statement in its year end financial statements, which are circulated to shareholders and filed with ROC/Income Tax Dept.
- Number of Board Meetings - A small company is only required to hold minimum 2 board meetings in a year as against the requirement of min. 4 board meetings for public/private companies.
- Annual Return Filing - The annual return to be filed with ROC can be signed either by a Company Secretary or by any Director of the company.
- Rotation of Auditors - The provisions regarding rotation of auditors are not applicable to small companies.