Small company

                                                                   Small company

Small company is a new form of private company under the companies’ act 2013. A company is defined as a small company on the basis of its size i.e. paid up capital and turnover. Small company is treated as small sized private company.

As per sec. 2(85) small company means a company which satisfy the following criteria

1.       Paid-up share capital of which does not exceed 50 lakhs rupees or such higher amount as may be prescribed which shall not ne more than 5 crore rupees.

                  

                                                     OR

2.       Turnover of which as per its last profit and loss account does not exceed 2 crore rupees or such higher amount as may be prescribed which shall not be more than 20 crore rupees.

Following companies are excluded from this definition:

               

1.       A holding or subsidiary company.

2.       Company registered under sec 8 of the companies act.

3.       A company or body corporate governed by any special act.