Budget breather for 'small companies', LLPs and one-person companies

Few compliances, lower filing fees and penalties for over 200,000 companies and new category of small LLPs

More than 200,000 companies will have reduced compliance burden following a  change in the definition of small companies announced in the Union Budget 2021-22 in terms of fewer compliances, and lower filing fees and penalties. 

The budget has raised the threshold of paid-up capital for small companies from Rs 50 lakh to Rs 2 crore and turnover from Rs 2 crore to Rs 20 crore. 

Companies falling under this definition would not have to prepare cash flows as part of financial statements and would need to hold only two board meetings a year. 

While other companies must provide details of remuneration to directors