Small Companies to facilitate ease of doing business 

The Ministry of Corporate Affairs on September 16 shared that it has revised the threshold for paid up capital of “small companies”. The latest revisions will further facilitate ‘Ease of Doing Business’ and reduce the compliance burden on “small companies”.

THE MINISTRY OF CORPORATE AFFAIRS (MCA) REVISES THE THRESHOLD FOR PAID-UP CAPITAL OF “SMALL COMPANIES”. THE LATEST REVISION WILL FACILITATE EASE OF DOING BUSINESS FURTHER AND REDUCE THE COMPLIANCE BURDEN ON “SMALL COMPANIES”

Small businesses are corporations, partnerships, or sole proprietorships which have fewer employees and/or less annual revenue than a regular-sized business or corporation. The Companies Act 2021, defines the rules and provisions regarding a Small Company.

Small Companies enjoy various advantages over other companies in terms of compliance requirements. For instance, a small company requires to hold only two board meetings in one fiscal year, unlike other companies which are required to hold four such meetings in the same period.– 

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