vibha

In accordance with the proviso to Section 2(71) which states that even if the subsidiary company, by its articles, choose to remain a private company, it will be treated as a deemed public company for all purposes of the Act if the holding company is NOT a private company. Thus a subsidiary may remain private by its own choice as far as its internal matters are concerned (such as not inviting public to subscribe in shares etc.), but in the eyes of law, it will be public and have to comply with the provisions as are applicable to the Public companies. Accordingly the pvt co., has to comply with the requirements under the Companies Act,2013 (mandatory for all public companies(including deemed public companies) with a paid up capital of 10Crs or more like appt of kmp,constitution of committees and appt of independent directors. since in your case as paid up capital is less than 10crs no such requirement is there.