small company - Kumar_and

Small businesses are companies that have fewer employees and/or less annual revenue than a regular-sized business or corporation.
According to the latest amendment, the definition of ‘Small Companies’ having paid-up Capital “not exceeding Rs 4 crore” and the turnover “not exceeding Rs 40 crore”.
A few benefits which a Small Company enjoys are as follows:

For instance, a small company is required 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.
Such companies are not required to maintain their cash flow statement as part of their financial statement, unlike other Companies.
These Companies have the advantage of preparing and filing an Abridged Annual Return i.e. (Form MGT-7A).
The requirement of mandatory rotation of statutory auditors is not applicable to small companies.
The requirement to report on the adequacy of the internal financial controls and its operating effectiveness in the auditor’s report by an auditor of a small company is not mandatory.
Annual Returns of the small company could simply be signed by a company secretary, in case the Company has one, or by a single director.
Small companies are ascribed to lesser penalties under Section 446B of the Act.

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