The Institute of Chartered Accountants of India’s (ICAI) Corporate Laws & Corporate Governance Committee has published the “Handbook for Company Form of Organisation: Compliances by Small Companies.” This handbook provides guidance to members on various provisions and exemptions granted to small companies under the Companies Act 2013.
One objective of the Companies Act 2013 is to encourage small businesses by simplifying compliance requirements for such entities. The Act provides relaxed norms related to filings, fees, and penalties for one person companies and small companies, considering their size and limited resources. The Micro, Small and Medium Enterprise (MSME) sector has become integral to India’s economic growth. Small companies operate across manufacturing and services, providing employment and contributing significantly to the GDP.
Proper compliance helps small businesses remain competitive, reduce risk, and ensure transparent operations. However, small companies often lack expertise and resources to keep up with changing regulations. To address this, the ICAI handbook explains legal compliances in a simple manner to aid understanding. It covers practical aspects related to small companies and guides them to meet obligations while adhering to corporate governance principles.
With small companies forming the backbone of India’s self-sufficiency and development, the handbook enables professionals to assist such entities appropriately. By meeting compliance requirements, small companies can avoid fines, protect their interests, and focus on growth. The publication is a valuable step toward strengthening the culture of compliance and corporate governance in small businesses that play a major role in the Indian economy. It emphasizes the importance of transparency and responsibility in operations for robust growth.
ICAI Handbook on Compliances by Small Companies (February 2023)