Small Company or Small Business as Per Companies Act 2013

A Small Business is privately-owned partnerships, sole proprietorships, or corporations. These types of companies have fewer employees or have small annual revenue than other structures of a business. The Businesses which are defined as “small” are in terms of being able to apply for government support and qualify for the preferential tax policies which vary depending on the country and the industry.

Benefits of Small Company or Small Business


The owner can fastly reply to the customer as there will be fewer customers. The big business usually has to face problem while connecting with the customers. The small business does not face these problems frequently. However, the customers will feel satisfied with the services provided by the business.


A most important advantage of having a small business is that there is will be no bureaucracy which means that you have the freedom to implement changes as and when you want to. There is no formal procedure to make any changes in the business. The owner is free to customize his business according to his needs and benefits. However, the owner of the business will free to run his business without any pressure.

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It means that you can run your business in a way that makes you happy. The owner will get to decide the values that matter to his business. As well as he can choose to run at a loss or reinvest profits, to keep things small or go for rapid growth.


Starting up the Small Business: It’s perfectly possible to apply for company registration without any capital. If you’ve got friends and family members who are passionate about your business they may wish to help out. This method is much more sustainable. No fixed capital is required to start any Small Business. However, the owner can anytime add any amount of capital he wished to in the business.


With the help of ECommerce, the owner can easily choose the way of ECommerce to reach the customers fastly as he is only the owner of his company. However, E-commerce will pay benefits to the business.

Small Company


  • Few Employees

Small Business does not have a large number of employees. This makes it easy for the owner to manage the whole business, however, this will create smooth functioning of the business. Lower the employees smoother the work. Therefore the employees will work actively in the company.

  • Small Market Area

The Small Business restricts itself to a small area of the market. However, it is a disadvantage but it can gain profits from the small area by attracting a large number of customers towards the company or business. Therefore it creates an advantage for the small business and gains profits for the business.

  • Knowing Customer Well

The Small Business knows its customers well as it is a small business, this will have a small number of customers too. This will make the owner focused on the target customers and create profits for the business.

  • Limited Revenue

The area of the market for a small business is small and will have a limited number of employees this will create a disadvantage for the small-scale company. However, the owner will earn a small amount of revenue from the business.


A small business has many advantages and disadvantages but it makes it easy for the owner of the business to manage the business easily. There is no pressure of workload, no pressure of going to many places due to the small market area.

small business

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