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What is the key requirement for a company to be considered a "small company"?
- a)Paid-up share capital not exceeding fifty lakh rupees
- b)Turnover not exceeding twenty crore rupees
- c)Paid-up share capital not exceeding five crore rupees
- d)Turnover not exceeding two crore rupees
Correct answer is option 'D'. Can you explain this answer?
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What is the key requirement for a company to be considered a "sma...
Key Requirement for a "Small Company":
Turnover not exceeding two crore rupees
- A key requirement for a company to be considered a "small company" is that its turnover should not exceed two crore rupees.
- This criterion is commonly used to classify companies based on their size and scale of operations.
- By having a turnover limit, it helps distinguish smaller companies from larger corporations that may have significantly higher revenues.
- Small companies are generally characterized by having limited resources, fewer employees, and operating on a smaller scale compared to their larger counterparts.
- This turnover limit is often used by regulatory authorities and government agencies to provide certain benefits or exemptions to small companies, such as relaxed compliance requirements or tax incentives.
- Companies that meet this turnover criterion are eligible for various schemes and programs aimed at supporting and promoting the growth of small businesses.
- It is essential for companies to monitor their turnover regularly to ensure that they continue to qualify as a small company and avail the associated benefits.
By adhering to the turnover limit of two crore rupees, a company can be classified as a "small company" and potentially access various advantages and opportunities tailored for businesses of its size.
Turnover not exceeding two crore rupees
- A key requirement for a company to be considered a "small company" is that its turnover should not exceed two crore rupees.
- This criterion is commonly used to classify companies based on their size and scale of operations.
- By having a turnover limit, it helps distinguish smaller companies from larger corporations that may have significantly higher revenues.
- Small companies are generally characterized by having limited resources, fewer employees, and operating on a smaller scale compared to their larger counterparts.
- This turnover limit is often used by regulatory authorities and government agencies to provide certain benefits or exemptions to small companies, such as relaxed compliance requirements or tax incentives.
- Companies that meet this turnover criterion are eligible for various schemes and programs aimed at supporting and promoting the growth of small businesses.
- It is essential for companies to monitor their turnover regularly to ensure that they continue to qualify as a small company and avail the associated benefits.
By adhering to the turnover limit of two crore rupees, a company can be classified as a "small company" and potentially access various advantages and opportunities tailored for businesses of its size.
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What is the key requirement for a company to be considered a "sma...
As per Section 2(85), a "small company" is defined as a company with a turnover not exceeding two crore rupees or such higher amount as may be prescribed, subject to certain exceptions.
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What is the key requirement for a company to be considered a "small company"?a)Paid-up share capital not exceeding fifty lakh rupeesb)Turnover not exceeding twenty crore rupeesc)Paid-up share capital not exceeding five crore rupeesd)Turnover not exceeding two crore rupeesCorrect answer is option 'D'. Can you explain this answer?
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