The Ministry of Corporate Affairs (MCA) has taken several measures in recent times to promote ease of doing business and ease of living for corporates. These measures are aimed at reducing the compliance burden on companies, especially small companies, and creating a more conducive business environment for them.
The MCA has revised the definition of small companies under the Companies Act, 2013, and extended various benefits to them. Here are the definitions and benefits in points:
Definition of Small Companies:
- Paid-up capital threshold increased from “not exceeding Rs 2 crore” to “not exceeding Rs 4 crore”
- Turnover threshold increased from “not exceeding Rs 20 crore” to “not exceeding Rs 40 crore”
Benefits of reduced compliance burden for small companies:
- No need to prepare a cash flow statement as part of the financial statement.
- Advantage of preparing and filing an Abridged Annual Return.
- Mandatory rotation of the auditor is not required.
- An Auditor of a small company is not required to report on the adequacy of the internal financial controls and its operating effectiveness in the auditor’s report.
- Only two board meetings required in a year.
- Annual Return of the company can be signed by the company secretary or a director of the company if there is no company secretary.
- Lesser penalties for small companies.
Small companies represent the entrepreneurial aspirations and innovation capabilities of lakhs of citizens and contribute to growth and employment in a significant manner. The government’s commitment to reducing the compliance burden on small companies is evident in its efforts to revise the definition of small companies and provide them with the benefits mentioned above.
These measures are significant for small companies in Gurgaon and Faridabad, which are emerging as new startup hubs in the National Capital Region (NCR). The revised definition of small companies will encourage more startups to register themselves and avail of the benefits provided by the government. Startups in Gurgaon and Faridabad can take advantage of these benefits to grow their businesses and contribute to the overall development of the region.
The reduction in compliance burden for small companies is a welcome step towards promoting ease of doing business. The government has been working towards improving the ease of doing business in India and has taken several measures towards this end. The MCA’s measures towards reducing the compliance burden on small companies will go a long way in promoting the government’s vision of a self-reliant India.
In conclusion, the MCA’s measures towards reducing the compliance burden on small companies are significant and will provide a much-needed boost to startups in Gurgaon and Faridabad. Startups in these regions can take advantage of the revised definition of small companies to register themselves and avail of the benefits provided by the government. By doing so, they will contribute to the growth of the economy and fulfill the government’s vision of a self-reliant India.
If you are a startup or a small company in Gurgaon or Faridabad, it is important to hire a Chartered Accountant (CA) to manage your finances and ensure compliance with the regulations set by the Ministry of Corporate Affairs (MCA) and other government bodies.
A CA can help you in the following ways:
- Financial Management: A CA in gurgaon and faridabad can help you manage your finances, prepare budgets and cash flow projections, and advise you on how to optimize your cash flow.
- Tax Planning and Compliance: A CA in gurgaon and faridabad can help you plan your taxes and ensure compliance with various tax laws such as GST, Income Tax, and others.
- Audit and Assurance: A CA can provide you with assurance services and conduct audits to ensure that your financial statements are accurate and in compliance with accounting standards.
- Legal Compliance: A CA can help you ensure compliance with various legal regulations such as the Companies Act, 2013, and other laws related to your industry.
- Business Advisory: A CA in gurgaon and faridabad can provide you with valuable advice on various aspects of your business such as fundraising, business expansion, mergers and acquisitions, and more.
When hiring a CA, it is important to look for someone who has experience working with startups and small companies. They should have a good understanding of the regulatory environment and be able to provide you with customized solutions to meet your specific needs.
There are several firms and individual CAs in Gurgaon and Faridabad who specialize in providing services to startups and small companies. You can search for them online or ask for referrals from your network.
In conclusion, hiring a CA firm in gurgaon and faridabad is essential for startups and small companies in Gurgaon and Faridabad to manage their finances and ensure compliance with regulations. By hiring a CA, you can focus on growing your business while leaving the financial and compliance aspects to the experts.
