New Delhi : The central government is constantly trying to make business easier in the country. In this sequence, the Union Ministry of Corporate Affairs (MCA) has taken a big step. The government has increased the paid-up capital limit of small companies under the Companies Act 2013.
According to the new limit, now companies with a turnover of Rs 2 crore to Rs 4 crore and between Rs 20 crore and Rs 40 crore will be considered small companies. Earlier this limit was Rs 50 lakh to Rs 2 crore for paid-up capital and Rs 2 crore to Rs 20 crore for turnover.
In a press release issued by the government, it was said that small companies represent the entrepreneurial aspirations and innovation capabilities of the country. Along with this, these companies also play an important role in generating employment in the country. The effort of the government is to create a business environment for law-abiding companies in the country and reduce the compliance burden on companies.
Small companies will benefit from this
These companies will no longer be required to prepare cash flow statements during the financial statements. Now, these companies can take advantage of filing a summary annual report.
It is not necessary to change the auditor. A small company auditor is not required to report on the adequacy and operational effectiveness of internal financial controls in the audit report.
Companies will now have to hold only two board meetings in a year.
The signature of the company secretary will no longer be required on the annual report and now the directors of the company can also sign. Smaller companies will also be fined less.
(This story has not been edited by localpostit.com and is auto generated from a syndicated feed we subscribe to)