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Small Company as per Companies Act 2013

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Aishwarya Shah

Companies Act 2013
Incorporation
small company
Last updated on May 5th, 2021

The Companies Act 2013 had introduced the concept of Small Company. It is not specifically registered with the specific name but is simply a Private Company with less amount of investment and less turnover. In a Developing Country like India, such a company plays a significant role.

Small Company under Companies Act 2013

According to Companies Act 2013, Small company means the company which satisfies the following conditions:-

Exceptions in case of Small Companies

A Company is not a Small Company if:-

  1. It is a Public Company.
  2. It is a Holding of another company.
  3. The company is a subsidiary of another company.
  4. The company is a Section 8 Company.
  5. It is a company governed by any Special Act.

Features of Small Company

Privileges

Companies Act 2013 provides certain benefits to the Small companies which includes:-

Private Limited Company Registration
Expert assisted plan for incorporation of your Private Limited Company
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Private Limited Company Registration
Expert assisted plan for incorporation of your Private Limited Company
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FAQs

What is the difference between a small company and private company?

A small company is a private company whose capital does not exceed 50 lakhs or such higher amount as prescribed which shall not be more than 10 crores and turnover does not exceed 2 crores or such higher amount as may be prescribed which shall not be more than 100 crores while a Private company includes a Small Company.

What will be the consequence if my threshold limit for capital and turnover exceeds the limit prescribed for Small Company under the Companies Act 2013?

If the capital of a Small Company or turnover exceeds the threshold limit, it is no more considered as a Small Company and it can no more enjoy the privileges granted to a Small Company under the Act.

Got Questions? Ask Away!

  1. Hey @Anamika_Sharma

    According to Companies Act 2013, Small company means the company which satisfies the following conditions:-

    1. It has paid up share capital of not more than 50 lakhs or such higher amount as may be prescribed which shall not be more than 10 crores,
    2. It has annual turnover of not more than 2 crores or such higher amount as may be prescribed which shall not be more than 100 crores.

    You can read more about Small Companies here:

    Hope this helps!