CA Inter P2 · Chapter 1 · Question 7 of 9
Which of the following companies can be a 'small company' under section 2(85), provided it meets the capital and turnover criteria?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A private company that is neither a holding nor a subsidiary company
Explanation
Section 2(85) excludes a holding company, a subsidiary company, a company registered under section 8 and a company or body corporate governed by any special Act. A small company must also be a company other than a public company. A standalone private company within the prescribed limits qualifies.
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