NEW DELHI, June 9: Chartered accountants’ apex body ICAI today said latest exemptions provided under the companies law would help private companies run their business smoothly.
As part of efforts to further improve the ease of doing business in the country, the Corporate Affairs Ministry has allowed various relaxations to compliance requirements for private companies.
“ICAI is happy that the government has issued the long awaited notification to give exemptions to the private companies,” it said in a statement.
The Institute of Chartered Accountants of India (ICAI) has been giving suggestions to the government to help India improve its position globally in terms of ease of doing business.
“Now, it would be easy for private companies to run their business smoothly and further a committee has also been constituted to recommend to the government further changes that are required in the companies law,” ICAI President Manoj Fadnis said.
Fadnis is a member of the committee set up by the Ministry to look at possible changes required in the companies law.
Among others, transactions between any company which is holding, subsidiary or an associate of such that entity and subsidiary of holding would not be treated as related party transactions.
“A big relief to the private companies which will help in the capital formation is that the companies can accept deposits from members which is not exceeding 100 per cent of aggregate of the paid up share capital and free reserves,” the statement noted.
Exempting private companies from filing board resolutions with the Registrar would help them to reduce compliance costs, it added. (PTI)
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