Which filings does a small company still make?

Who counts as a small company?

A small company is a private company whose paid-up share capital does not exceed ₹4 crore and whose turnover, as per the profit and loss account of the preceding financial year, does not exceed ₹40 crore. Both limits apply. The test is set out on the small company definition page.

Section 2(85) lets the government prescribe those amounts up to a ceiling of ₹10 crore of paid-up capital and ₹100 crore of turnover. The ceiling is the most that may be prescribed. It is not the test a company uses today. A proposal to raise that ceiling further is not law until it is passed and notified. A public company, a holding company, a subsidiary, a section 8 company, and a company governed by a special Act are outside the definition even when the rupees are met.

Which meetings does it hold?

It holds at least one board meeting in each half of the calendar year, and at least 90 days elapse between those two meetings. It may hold more. The ordinary company holds four meetings, with not more than 120 days between them. The meeting rule is on the board meetings page.

It still holds an annual general meeting within six months of the financial year-end, so a 31 March year is held by 30 September. The first meeting is within nine months of the first year-end. Not more than fifteen months elapse between two meetings. The meeting is on the annual general meeting page.

Which returns does it file?

AOC-4 is filed within 30 days of the annual general meeting. The financial statements do not include a cash-flow statement. The statements are on the financial statements page.

The annual return is Form MGT-7A, filed within 60 days of the meeting. A company secretary signs it, or a director signs it if the company has no company secretary. The return is shorter than MGT-7. The board’s report is the abridged report the rules allow. The wider annual list is on the annual compliances page.

Every company has a statutory audit, including a small company. The board appoints the first auditor within 30 days of incorporation. If it does not, the members appoint the auditor within 90 days. That first auditor holds office until the first annual general meeting. ADT-1 is filed within 15 days of the appointment the members make, and it is not filed for the board’s first appointment. The appointment is on the auditor page.

The income-tax return is ITR-6. It is due on 31 October, or on 30 November if section 92E applies.

Which penalties still apply?

Section 446B halves several penalties for a small company, and it caps the company’s penalty at ₹2 lakh and the officer’s penalty at ₹1 lakh. The filings are still due. A company that misses its financial statements or its annual returns for three continuous financial years can disqualify its directors for five years under section 164(2).

Frequently asked questions

Four questions cover the rupee limits, board meetings, the statutory audit, and ADT-1.