Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.



The Ministry of Corporate Affairs (MCA) revises threshold for paid up capital and turnover for Small Companies.




The threshold for the paid up capital has been revised from “not exceeding Rs 50 lakh” to “not exceeding Rs 2 crore” & turnover from “not exceeding Rs 2 crore” to “not exceeding Rs 20 crore”, for defining a ‘small company’.


  • No need to prepare cash flow statement as part of financial statement.
  • Where other companies require providing details of remuneration to directors and key managerial personnel, small companies are required to provide details of only the aggregate amount of remuneration drawn by directors in its Annual Return.
  • Mandatory rotation of auditor not required.
  • An Auditor of small companies is not required to report on the adequacy of the internal financial controls and its operating effectiveness in the auditor’s report.
  • Hold only two board meetings in a year.
  • Annual Return of the company can be signed by the Company Secretary, or where there is no company secretary, by a single director of the company.
  • Lesser penalties for Small Companies.
  • Lesser filing fees for Small Companies.


  • Small companies are the backbone of our corporate world.
  • They represent the Entrepreneurial aspirations & Innovation capabilities of lakhs of citizens.
  • They contribute to employment and GDP in a very substantial manner.
  • The idea is to create a more conducive business environment for such law abiding companies, including reduction of compliance burden on such companies.


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