Sme Definition Companies Act 2013

According to this a small company is one that has a turnover of not more than 6 5 million a balance sheet total of not more than 3 26 million and not more than 50 employees. Given that there have been many developments in the economy since 2005 such as price inflation structural changes and change in business trends a review of the definition was undertaken in 2013 and an sme definition was endorsed at the 14 nsdc meeting in july 2013. Section 2 85 of the companies act 2013 defines small company as under 85 small company means a company other than a public company i paid up share capital of which does not exceed fifty lakh rupees or such higher amount as may be prescribed which shall not be more than five crore rupees.

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Smes make up the majority of the uk s workforce and need to meet two of the following three criteria to be defined as an sme.

Sme definition companies act 2013. Sme stands for small or medium sized enterprise. It is based on the analysis and interpretation of applicable laws as on date. Small and medium sized enterprises smes represent 99 of all businesses in the eu. The information given in this document has been made on the basis of the provisions of companies act 2013 and rules made there under.

Small and medium sized enterprises smes are defined in the eu recommendation 2003 361. In the uk sections 382 and 465 of the companies act 2006 define a sme for the purpose of accounting requirements. These are businesses that have under a certain number of employees in the uk this is defined as less than 250 employees. Definition of an sme.

The definition of an sme is important for access to finance and eu support programmes targeted specifically at these enterprises. What is an sme.

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