Small company

 What is a small company?

Small company as a company other than public company whose :

● Paid up share capital does not exceed 4 crores or such amount as maybe prescribed and the prescribed amount shall not be more than 10 crores (amended)

● Who is turnover as per its last profit and loss does not exist 40 crore or such amount as may be prescribed and the prescribed amount shall not be more than 100 crore. (Amended)

The following companies are not treated at small companies

• A holding company or a subsidiary company.

• A company registered under section 8.

• A company or a body corporate governed by any special act.

Some facts about small company :

• Most startups in India are classified as small companies as they will not have a paid-up capital of more than Rs.10 crores and an annual sales turnover of more than Rs.20 crores.
• Small companies must have a maximum of two meetings in a financial year.
• A small company need not maintain a cash flow statement as a part of its financial statement. 
• A small company does not require to rotate its auditors.

Annual revenue is lower for small businesses than for larger ones. Small businesses are crucial for increasing employment and creating revenues in emerging nations like India. They support the economy as a whole.