The MCA vide its Notification No. G.S.R. 700(E) Dated 15th September, 2022 has yet again revised the limits of paid-up capital and turnover for attaining the status of small company.
The revised limits are as follows:
|Paid-up share capital||2 crore||4 crore|
|Turnover||20 crore||40 crore|
Accordingly, the definition of small company under section 2(85) shall be read as under:
small company means a company, other than a public company—
(i) paid-up share capital of which does not exceed four crore rupees or such higher amount as may be prescribed which shall not be more than ten crore rupees and
(ii) turnover of which as per profit and loss account for the immediately preceding financial year does not exceed forty crore rupees or such higher amount as may be prescribed which shall not be more than one hundred crore rupees:
Provided that nothing in this clause shall apply to—
(A) a holding company or a subsidiary company;
(B) a company registered under section 8; or
(C) a company or body corporate governed by any special Act;
Note: It is to be noted that the amended provisions are applicable with immediate effect i.e., from 15th September, 2022 onwards.
However, for the purpose of annual filing pertaining to F.Y. 2021-22, the old limits of ₹2 crore PUC and ₹20 crore turnover shall be applicable.