Govt notifies New Exemptions to Private Ltd Companies
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The Government of India recently notified the exemption to Private Limited Companies under the provisions of Companies Act, 2013.
In the year 2015, the Government has issued four notifications granting several exemptions to Private companies, section 8 companies, Government companies and Nidhi companies.
As we all know that some exemptions were granted by MCA to Private Companies on 05.06.2015, the MCA has added more exemptions by amending the notification issued on 5th June, 2015 and by notifying further exemptions on 13th June, 2017.
As per the Notification, the exceptions, modifications and adaptations provided in it shall be applicable to a company covered under section B of the said Act which has not committed a default in filing its financial statements under section 137 or annual return under section 92 of the said Act with the Registrar.
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Exemptions to Private Companies under Companies Act, 2013
1. New Concept of *Start-up/ Start-up Companies* has been introduced:
Start up Private Companies are not required to prepare the Cash Flow Statements under Companies Act, 2013.
For the purposes of this Act, the term 'start-up' or "start-up company" means a private company incorporated under the Companies Act, 2013 (18 of 20'l3) or the Companies Act, 1956 ('l of 1956) and recognized as start-up in accordance with the notification issued by the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry."
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2. The Private Companies which are small companies are not required to mention the amount of *remuneration drawn* by Directors in Annual Return.
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3. The disclosure requirement of Adequacy of *Internal financial control in Auditor’s report* has been removed for a private company which is One Person Company or a small company or which has turnover less than rupees fifty crores as per latest audited financial statement or which has aggregate borrowings from banks or financial institutions or anybody corporate at any point of time during the financial year less than rupees twenty-five crore.
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4. The Startup Private Companies are also not required to hold minimum number of four *board meetings* in a year.
Earlier there were only One Person Company, small company and dormant company in this category of exemption.
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Read the full text of the Notification Here
👇👇👇👇
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Regards
ACA SOURAV BAGARIA
For the purposes of this Act, the term 'start-up' or "start-up company" means a private company incorporated under the Companies Act, 2013 (18 of 20'l3) or the Companies Act, 1956 ('l of 1956) and recognized as start-up in accordance with the notification issued by the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry."
.
2. The Private Companies which are small companies are not required to mention the amount of *remuneration drawn* by Directors in Annual Return.
.
3. The disclosure requirement of Adequacy of *Internal financial control in Auditor’s report* has been removed for a private company which is One Person Company or a small company or which has turnover less than rupees fifty crores as per latest audited financial statement or which has aggregate borrowings from banks or financial institutions or anybody corporate at any point of time during the financial year less than rupees twenty-five crore.
.
4. The Startup Private Companies are also not required to hold minimum number of four *board meetings* in a year.
Earlier there were only One Person Company, small company and dormant company in this category of exemption.
.
Read the full text of the Notification Here
👇👇👇👇CLICK HERE
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Regards
ACA SOURAV BAGARIA
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