MCA exempts MSMEs with paid up share capital of Rs 5 crore from appointing Company Secretary

New Delhi, Feb 22 (KNN) The Ministry of Corporates Affairs (MCA) has exempted the Micro, Small and Medium Enterprise (MSME) from appointing a whole time Company Secretary whose paid up share capital is Rs 5 crore, said a notification.

''It is informed that MCA has now issued a notification no.G.S.R. 13 (E) dated 03.01.2020 conveying that every private company which has paid up share capital of 10 crore or more (instead of rs 5 crore or more) shall have a whole time company secretary,'' said the ministry in its notification dated 03/1/2020.

''The MSME ministry has received references from MSME associations regarding the problems face by them in particular for the mandatory requirement of whole time company secretary by each private company with a paid up share capital of rs 5 crore or more,'' the notification read further.

The matter was examined and same was taken up with the MCA keeping in view the problems faced by MSEs which are mostly in the category of either proprietorship or partnership firm, exemption may be considered, irrespective of capital structures for mandatory engagement of a full time company secretary.

---------------------

---------------------