The concept of Small Company was first introduced in the Companies Act, 2013. This is a new step towards the de-regulation of entities through providing some exemptions, privileges and liberation with lesser compliances burden on the entities which are smaller in size and operations. A Small company means a company, other than a public company, with paid-up share capital which does not exceed Rs. 50 lakhs or such higher amount which shall not be more than Rs.5 crore , and turnover as per its last profit and loss account does not exceed Rs.2 crore or such higher amount which shall not be more than Rs.20 crore.