Arrival of Prime Minister in Samarkand to attend the SCO Summit
Why
is it in news?
Prime Minister Shri Narendra Modi arrived in
Samarkand, Uzbekistan this evening, at the invitation of the President of
Uzbekistan, H.E. Mr. Shavkat Mirziyoyev, to attend the 22nd Meeting of the
Council of Heads of State of the Shanghai Cooperation Organization (SCO).
Highlights
On
arrival in Samarkand, Prime Minister was warmly received by H.E. Mr. Abdulla
Aripov, the Prime Minister of Uzbekistan. Several Ministers, Governor of the
Samarkand region and other senior officials from the Government of Uzbekistan
also welcomed the Prime Minister at the airport.
On 16 September 2022, Prime Minister will
participate in the SCO Summit and will hold bilateral meetings with the
President of Uzbekistan and some of the other leaders attending the Summit.
MCA revises threshold for paid up capital of “small companies” Latest revision to facilitate Ease of Doing Business further and reduce compliance burden on “small companies”
Why is it in news?
The Ministry of Corporate Affairs (MCA)
has taken several measures in the recent past towards ease of doing business
and ease of living for the corporates. These included decriminalisation
of various provisions of the Companies Act, 2013 & the LLP Act, 2008,
extending fast track mergers to start ups, incentivising incorporation of One
Person Companies (OPCs) etc.
Highlights
ü Earlier,
definition of “small companies” under the Companies Act, 2013 was revised by
increasing their thresholds for paid up capital from “not exceeding Rs 50 lakh”
to “not exceeding Rs 2 crore” and turnover from “not exceeding Rs 2 crore” to
“not exceeding Rs 20 crore”. This definition has, now, been further revised by
increasing such thresholds for paid up Capital from “not exceeding Rs. 2 crore”
to “not exceeding Rs. 4 crore” and turnover from “not exceeding Rs. 20 crore”
to “not exceeding Rs. 40 crore”.
ü 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 has always been committed to taking measures which
create a more conducive business environment for law-abiding companies,
including reduction of compliance burden on such companies.
Some of the benefits of reduction in
compliance burden as a result of the revised definition for small companies are
as under:
·
No need to prepare cash flow
statement as part of financial statement.
·
Advantage of preparing and
filing an Abridged Annual Return.
·
Mandatory rotation of
auditor 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.
·
Holding of only two board
meetings in a year.
·
Annual Return of the company
can be signed by the company secretary, or where there is no company secretary,
by a director of the company.
·
Lesser penalties for small
companies.