Notification No G.S.R. 700(E) Dated 15th September, 2022
The Ministry of Corporate Affairs has revised the limits of paid up capital and turnover for attaining the status of a Small Company.
The turnover limit has been inceased from Rs.20 Crores to Rs.40 Crores &
Share Capital limit has been increased from Rs.2 Crores to Rs.4 Crores.
The said changes will be effective for the Financial Year 2022 – 2023.
Some of the benefits of a small company
- Cash Flow Statements need not be prepared
- No mandatory rotation of Statutory Auditors
- Mandatory board meetings is 2 instead of 4
- Statutory Auditor need not comment on adequacy of the internal financial controls and its operating effectiveness in the auditor’s report
- Abridge annual return to be filed instead of a lengthier annual returns.