Billing Software for Small Company

What is a Small Company in India?

In a fast-paced economy like India, small businesses play a vital role in driving innovation, creating jobs, and fostering local development. The Companies Act of 2013 introduced the term "small company" to encourage entrepreneurship, simplify compliance, and facilitate smoother business transactions.

Well, according to Section 2(85) of the Companies Act of 2013, a private limited company in India is classified as a small company if it meets certain financial criteria. The aim here is to make things easier for these businesses by simplifying compliance, reducing the standards for financial reporting, and offering some regulatory relief for those with lower turnover and capital.

A company that is not a public company and satisfies the following: 

• The paid-up share capital should be capped at ₹4 crore, but there’s a chance to extend it up to ₹10 crore.
• The turnover is set at ₹40 crore, although it can be raised to ₹100 crore if needed.

Not eligible as a small company:

• Holding or subsidiary companies

• Section 8-registered businesses (non-profit organisations)

• Businesses subject to any special laws (such as banking or insurance)

Characteristics of a Small Company

Understanding the traits of small companies helps clarify their operational scope and significance.

1. Fewer Employees

• With limited financial scope, small companies typically operate with smaller teams or even solo founders.

2. Lower Revenue

• They have less annual income compared to large enterprises, though this doesn’t necessarily equate to lower profitability.

3. Limited Market Reach

• Local or niche markets are frequently served by small businesses, such as a neighbourhood grocery store or a regional service provider..

Benefits of a Small Company Under the Companies Act, 2013

The Act offers numerous advantages to companies qualifying as a small company:

Workflow Automation

• Annual Return: Can be signed by a single director or Company Secretary, unlike regular private companies requiring both.

• Board Meetings: Only two board meetings per financial year are required (instead of four).

• Cash Flow Statement: Not mandatory to maintain a cash flow statement as part of financial filings.

Fees and Penalties

• Lower ROC form filing fees.

• Reduced penalties for non-compliance.

Board’s Report Requirements for a Small Company

As per the simplified structure, the Board’s Report must include:

• 1

  Web link to annual return (if available)

• 2

  Number of Board meetings held

• 3

  Directors’ Responsibility Statement

• 4

  Fraud details (if any)

• 5

  Auditor's remarks with explanations

• 6

  State of company affairs

• 7

  Financial highlights

• 8

  Changes after financial year-end

• 9

  Directorship changes

• 10

  Any significant legal/regulatory orders

Smart Permissions (Multi-User Access)

Assign access roles:

• Sales team: Create/edit invoices

• Purchase team: Track inventory

• Accounts: Read-only financial access

GST Reports & Compliance

Generate:

• GSTR-1

• GSTR-3B

• GSTR-4A

Export and share with CA directly saving time and accountant fees.

User-Friendly Interface

No accounting background needed. Easy dashboard for faster navigation and self-management.

Sleek Bill enables small companies to operate like pros automating tasks, reducing costs, and boosting productivity.