Impact of Company Law on Small and Medium-Sized Enterprises

  • Rajarshi Tripathi and Sonali Singh
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  • Rajarshi Tripathi

    Student at Amity Law School, Lucknow, India

  • Sonali Singh

    Student at Amity Law School, Lucknow, India

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Small and medium-sized enterprises (SMEs) are critical for the growth and stability of many economies. Company law, which governs the formation, operation, and governance of businesses, can have a significant impact on the success and growth of SMEs. This research paper provides a comprehensive overview of the impact of company law on SMEs, exploring both the benefits and challenges associated with compliance. It then examines the benefits of complying with company law, including improved reputation and credibility, protection of minority shareholders, access to capital markets, and improved corporate governance. The paper then turns to the challenges faced by SMEs in complying with company law, including compliance costs, the burden of administrative requirements, and the complex legal and regulatory environment. The paper argues that in order to balance the needs of SMEs with the requirements of company law, it is important to simplify compliance procedures, provide support and resources for SMEs, and encourage flexible and adaptive company law regulations. Finally, the paper concludes with a discussion of the importance of considering the needs of SMEs when developing and implementing company law. The paper highlights the need for a more nuanced and tailored approach to company law that considers the unique challenges and opportunities faced by SMEs.


Research Paper


International Journal of Law Management and Humanities, Volume 6, Issue 2, Page 481 - 491


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This is an Open Access article, distributed under the terms of the Creative Commons Attribution -NonCommercial 4.0 International (CC BY-NC 4.0) (, which permits remixing, adapting, and building upon the work for non-commercial use, provided the original work is properly cited.


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