Question

Small company as defined in Section 2(85) of the Companies Act, 2013 means which of the following company?

• A. Public Company of which turnover does not exceed Rs 2 Crores.
• B. A company registered under section 8.
• C. Public company of which paid-up share capital does not exceed Rs 50 lakhs.
• D. Private company of which paid-up share capital does not exceed Rs 50 lakhs.

Answer 1

The correct option is D Private company of which paid-up share capital does not exceed Rs 50 lakhs.

Small company as per section 2 (85) of the act means a company, other than a public company paid-up share capital of which does not exceed fifty lakh rupees or such higher amount as may be prescribed which shall not be more than five crore rupees; or turnover of which as per its last profit and loss account does not exceed two crore rupees or such higher amount as may be prescribed which shall not be more than twenty crore rupees.