Corporate and Other LawsMCQQuestion 12512 of 300
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Under Section 2(85) of the Companies Act, 2013, as amended, what are the maximum statutory thresholds of paid-up share capital and turnover for a private company to be classified as a 'Small Company'?

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option A — Paid-up capital up to ₹4 Crore and turnover up to ₹40 Crore

All Options:

  • APaid-up capital up to ₹4 Crore and turnover up to ₹40 Crore ✓
  • BPaid-up capital up to ₹2 Crore and turnover up to ₹20 Crore
  • CPaid-up capital up to ₹5 Crore and turnover up to ₹50 Crore
  • DPaid-up capital up to ₹10 Crore and turnover up to ₹100 Crore

Detailed Solution & Explanation

Correct Answer: Option **A** (Paid-up capital up to ₹4 Crore and turnover up to ₹40 Crore) **Statutory Provision (Section 2(85) - Small Company Definition):** Under Section 2(85) read with relevant MCA rules, a small company means a private company whose paid-up share capital does not exceed ₹4 crore and turnover as per immediately preceding financial year does not exceed ₹40 crore. Therefore, Option A is the correct legal position under the ICAI curriculum.

More Questions from Corporate and Other Laws

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Under Rule 3(3) of the Companies (Acceptance of Deposits) Rules, 2014, what is the maximum aggregate limit of deposits that an eligible public company can accept from its members and the public?

Which of the following is a requirement for a company to buy back its securities under the Companies Act, 2013?

What is the tax treatment of buyback of shares by an unlisted company?

Explain the concept of differential rights and its significance in the context of buyback of securities.

What are the legal provisions governing the buyback of securities by a company in India?

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