MCA – ‘Small Companies’ Redefined – Cap Raised 50L to 2 CR.

As per New Guidelines by MCA, Few Changes notified for Small Companies are –

Small Companies need to organize  2 board meetings in a calendar year, i.e. one board meeting in each half of the calendar year.

In the case of a small company, the annual return can be signed by the secretary of the company alone or by a single director if there is no Company Secretary (CS).

A small company is excluded from the requirements of the change of auditor by rotation U/s 139(2).

In the audit report, a small company is not required to report on internal financial controls and the company’s operational performance.

Companies Act prescribes lesser penalties in the case of a Small Company.

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