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Xyz private limited is a company e register under the companies act 2013 with a paid up share capital of rupees 40 lakh and turn over of rupees 2.5 crore explain the meaning of the small companies and mine whether the xyz private limited can avail the status of small company in accordance with the provisions of the companies act 2013?
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Xyz private limited is a company e register under the companies act 20...
Small Companies under Companies Act 2013

Small Companies are those companies which have a lower turnover, paid-up capital, and lesser regulatory compliance requirements compared to other companies. The Companies Act 2013 defines Small Companies under Section 2(85) as follows:

- Paid-up Capital of the Company should not exceed Rs. 50 lakhs.
- Turnover of the Company should not exceed Rs. 2 crores.

Status of XYZ Private Limited as a Small Company

As per the given information, XYZ Private Limited has a paid-up share capital of Rs. 40 lakhs and a turnover of Rs. 2.5 crores. Based on this, we can analyze whether XYZ Private Limited can avail the status of a Small Company.

- As per the definition of Small Companies, the paid-up share capital of XYZ Private Limited falls within the limit.
- However, the turnover of XYZ Private Limited exceeds the limit of Rs. 2 crores, which disqualifies it from being classified as a Small Company.

Conclusion

Based on the above analysis, we can conclude that XYZ Private Limited cannot avail the status of a Small Company as per the provisions of the Companies Act 2013, as its turnover exceeds the prescribed limit.
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Xyz private limited is a company e register under the companies act 2013 with a paid up share capital of rupees 40 lakh and turn over of rupees 2.5 crore explain the meaning of the small companies and mine whether the xyz private limited can avail the status of small company in accordance with the provisions of the companies act 2013?
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Xyz private limited is a company e register under the companies act 2013 with a paid up share capital of rupees 40 lakh and turn over of rupees 2.5 crore explain the meaning of the small companies and mine whether the xyz private limited can avail the status of small company in accordance with the provisions of the companies act 2013? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Xyz private limited is a company e register under the companies act 2013 with a paid up share capital of rupees 40 lakh and turn over of rupees 2.5 crore explain the meaning of the small companies and mine whether the xyz private limited can avail the status of small company in accordance with the provisions of the companies act 2013? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Xyz private limited is a company e register under the companies act 2013 with a paid up share capital of rupees 40 lakh and turn over of rupees 2.5 crore explain the meaning of the small companies and mine whether the xyz private limited can avail the status of small company in accordance with the provisions of the companies act 2013?.
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