February 02, 2021
Summary of the notifications issued by MCA on 01/02/2021
MCA amends criteria for a company to be classified as a Small Company under the Companies Act, 2013 with effect from 1st April, 2021
Through this amendment, any Company, other than a public Company, with paid up capital and turnover as per profit and loss account for the immediately preceding financial year not greater than Rupees two crores (as against earlier threshold of fifty lakhs) and Rupees twenty crores(as against earlier threshold of two crore) respectively shall be considered as a Small Company under the Companies Act, 2013 and its Rules.
MCA allows merger of Start-ups under Section 233 of the Companies Act, 2013
Through this notification, MCA now allows a scheme of merger or amalgamation under section 233 of the Act to be entered into between any of the following class of companies,
(i) two or more start-up companies; or
(ii) one or more start-up company with one or more small company.
For the purpose of this amendment,“start-up company” shall mean a private company incorporated under the Companies Act, 2013 or Companies Act, 1956 and recognised as such in accordance with notification number G.S.R. 127 (E), dated the 19th February, 2019 issued by the Department for Promotion of Industry and Internal Trade.
These notifications are available for reference on our free to use website www.ca2013.com for your quick reference.