Exemption Private Companies

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5. lTo BE PUBLTSHED tN THE GAZETTE OF lNDtA, EXTRA-ORD|NARY, PART il,
sEcTloN 3, suB-sECTroN (i)I
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
Notification
New Delhi, dated the r3y!une,2017
G.S.R. (E). - In exercise of the powers conferred by clauses (a) and (b) of sub-
section (1) of section 462 and in pursuance of sub-section (2) of section 462 of the
Companies Act, 2013 ('18 of 2013) (hereinafter referred to as the said Act), the Cenhal
Government, in the interest of public, hereby amends the notification of the Government
of lndia, in the Ministry of Corporate Aftairs, vide number G.S.R. 464(E) dated the 5th
June, 2015 published in the Gazette of India, Exhaordinary, Part-ll, Section 3, Sub-
section (i), dated the 5rh June 2015 (hereinafter referred to as the principal notification),
namely:-
2. In the principal notification, in the Table, the existing serial number 1 and the
entries relating thereto shall be re-numbered as serial number 1-A, and before the serial
number 14 as so re-numbered and the entries relating thereto, the following serial
number and the entries relating thereto shall be inserted, namely'-
(1) (21 (3)
"1. Chapter I,
clause (40)
of section 2.
For the proviso, the following shall be substituted, namely:-
Provided that the financial statement, with respect to
person company, small company, dormant company
private company (if such private company is a start-up)
not include the cash flow statement;
one
and
may
Explanation. - For the purposes of this Act, the term 'start-up'
or "start-up company" means a private company incorporated
under the Companies Act, 2013 (18 of 20'l3) or the
Companies Act, 1956 ('l of 1956) and recognised as start-up
in accordance with the notification issued by the Department of
lndustrial Policy and Promotion, Ministry of Commerce and
Industry.".

6. 3. In the principal notification, in
relating thereto, the following serial
substituted, namely:-
the Table, for serial number 6 and the entries
number and the entries relating thereto shall be
(1) (3)(2')
o. Chapter V,
clauses (a)
to (e) of
sub-section
(2) of
section 73.
Shall not apply to a private company-
(A) which accepts from its members monies not exceeding
one hundred per cent. of aggregate of the paid up share
capital, free reserves and securities premium account; or
(B) which is a start-up, for five years from the date of its
incorporation; or
(C) which fulfils all of the following conditions, namely:-
(a) which is not an associate or a subsidiary company of
any other company;
(b) if the borrowings of such a company from banks or
financial institutions or any body corporate is less than twice
of its paid up share capital or fifty crore rupees, whichever
is lower; and
(c) such a company has not defaulted in the repayment of
such borrowings subsisting at the time of accepting
deoosits under this section:
Provided that the company referred to in clauses (A), (B) or
(C) shall file the details of monies accepted to the Registrar in
such manner as may be specified.".
4. In the principal notification, in the table, after serial number 6 and the entries
relating thereto, the following serial numbers and the entries shall be inserted, namely:-
(1) (21 (3)
'6A, Chapter Vll,
clause (S)
of sub-
Shall apply to private companies which are small companies,
namery:-

7. section (1)
of section
92
"(g) aggregate amount of remuneration drawn by directors;".
o tt. Chapter Vll,
proviso to
sub-section
(1) of
section 92
For the proviso, the following proviso shall be substituted,
nametv:-
Provided that in relation to One Person Company, small
company and private company (if such private company is a
start-up), the annual return shall be signed by the company
secretary, or where there is no company secretary, by the
director of the company.".
5. In the principal notification, after serial number 9, the following serial number and
the entries relating thereto shall be inserted, namely:-
6. In the principal notification, after serial number 11, the following serial numbers and
the entries relating thereto shall be inserted, namely:-
(1) (2) (3)
'9A. Chapter X,
clause (i) of
sub-section
(3) of
section 143.
Shall not apply to a private company:-
(i) which is a one person company or a small company; or
(ii) which has turnover less than rupees fifty crores as per
latest audited financial slatement or which has aggregate
borrowings from banks or financial institutions or any body
corporate at any point of time during the flnancial year less
than rupees twenty five crore.".
(1) (2) (3)
Chapter Xll,
sub-section
(5) of
section 173.
For sub-section (5), the following sub-section shall be
substituted, namely:-
(5) A One Person Company, small company, dormant
company and a private company (if such private company is a
start-up) shall be deemed to have complied with the provisions
of this section if at least one meeting of the Board of Directors
has been conducted in each half of a calendar year and the
gap between the two meetings is not less than ninety days:

8. Provided that nothing contained in this sub_section and in
section 174 shall apply to One person Company in which
there is only one director on its Board of Directois.
Chapter Xll,
sub-section
(3) of
section 1 74.
disclosure of his interest pursuant to section 1g4.,,
S.hall apply wittr ttr
also be counted towards quorum in such meeting after
7' In the principal notification, after paragraph 2, the foilowing paragraph sha, beinserted, namely:-
"2A' The exceptions, modifications and adaptations provided in corumn (3) of theaforesaid Table shall be applicable to a privaie company which has not committeo adefault in firing its financiar statements under section 137 of the said Act or annuar returnunder section 92 of the said Act with the Registrar.,,.
1a t -l-
Joint Secretary to the Govt of India
Note: - 1. A copy of this notification has been laid in draft before both Houses ofParliament as required by sub-section (2) of section 462 of thesaid Act.
2. The principar notification was pubrished in the Gazette of India, Exhaordinary, part il,section 3, sub-section (i) vrde number G.S.R.464(E) dated the Srh June, 2015.