Small Company

What is a Small Company (Section 2)

  • Paid Up Capital <= Rs. 50 Lakhs
  • Turnover <= Rs. 2 Crores
  • Not holding, subsidiary, Section 8 Company, Special Company

Board Meeting Requirements (Section 173)

  • First meeting within 30 days of incorporation
  • Every year, January – June (minimum 1 meeting)
  • Every year, July – December (minimum 1 meeting)
  • Minimum 90 days gap between 2 consecutive meetings

MCA Filing Requirements

  • Once in 5 years
    1. Auditor appointment in first board meeting (Form ADT – 1)
  • Annual
    1. Annual Return (Form AOC – 4)
    2. Form MGT – 7

Citations

Section 2 of Companies Act 2013

(85) ‘‘small company’’ means a company, other than a public company,—
(i) paid-up share capital of which does not exceed fifty lakh rupees or such higher amount as may be prescribed which shall not be more than five crore rupees; or
(ii) turnover of which as per its last profit and loss account does not exceed two crore rupees or such higher amount as may be prescribed which shall not be more than twenty crore rupees:
Provided that nothing in this clause shall apply to—
(A) a holding company or a subsidiary company;
(B) a company registered under section 8; or
(C) a company or body corporate governed by any special Act;

http://www.mca.gov.in/SearchableActs/Section2.htm

Section 173 of the Companies Act 2013

(5) A One Person Company, small company and dormant company shall be deemed to
have complied with the provisions of this section if at least one meeting of the Board of
Directors has been conducted in each half of a calendar year and the gap between the two
meetings is not less than ninety days:

http://www.mca.gov.in/SearchableActs/Section173.htm