The Corporate Affairs Ministry (MCA) has relaxed the paid-up capital threshold for small companies, facilitating further Ease of Doing Business and reduced compliance burden for such companies. With this latest relaxation small companies would be exempted from preparing cash flow statements as part of financial statement and can also file an abridged annual return to MCA.
Against this backdrop, Manendra Singh, Associate Partner at Economic Laws Practice (ELP) has been quoted by BusinessLine in their article titled ‘Ease of doing biz: Capital norms relaxed for “small companies”’. He says, “In another move towards ease of doing business the government has expanded the scope of small companies under the Companies Act, 2013. As a result of which a larger set of companies will fall within such category. Notably small companies are allowed various relaxations in terms of compliances and that consequently reduces the cost and expenses of such early-stage companies.”
Read the detailed comment and article here: https://bit.ly/3QLPjhP