The Ministry of Corporate Affairs (MCA) taken several measures such as decriminalization of various provisions of Companies Act, 2013 and LLP Act, 2008 and more for the purpose of ease of doing business. Key Highlights of the changes are as follows:
- Thresholds for paid up capital is revised from “not exceeding Rs. 2 crores” to “not exceeding Rs. 4 crores” and turnover from “not exceeding Rs. 20 crores” to “not exceeding Rs. 40 crores”.
- There is reduction in the number of compliances namely for small companies:
- No preparation is required for cash flow statement as a part of financial statement
- Abridged annual return can be filed
- Mandatory rotation of auditors is not required.
- In an audit report, the auditor of small company is not required to report the adequacy of the internal financial controls and operating effectiveness.
- Holding two board meetings in a year.
- CS will sign Annual return of the company or where there is no company secretary annual return can be signed by the director of the company.
- Lesser penalties for small companies.
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