As per the latest amendments, the updated definition of Small Company u/s 2(85) of the Companies Act, 2013 is as follows:

® Small Company means a company, other than a public company-

(i) paid up share capital of which does not exceed fifty lakh 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 two 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;

According to the latest definition of Companies Act, 2013, a company may be treated as Small Company if both the above mentioned conditions are fulfilled, the word “and” is substituted for the word ‘or’ w.e.f 13.02.2015.

As per Companies (Amendment) Act, 2017, having effect from 07.05.2018 the paid up capital has been prescribed upto Rs. Ten crores and turnover as per immediately preceding financial year has been prescribed upto one hundred crores.

{Article Author – Richa Srivastava}

Author Bio

More Under Company Law

4 Comments

  1. Kameshwar Baranwal says:

    Dear Author, you have written that “As per Companies (Amendment) Act, 2017, having effect from 07.05.2018 the paid up capital has been prescribed upto Rs. Ten crores and turnover as per immediately preceding financial year has been prescribed upto one hundred crores.”
    “has been prescribed’ gives impression it is prescribed. If so please mention when it is prescribed.

  2. babita says:

    The definition says ‘turnover as per profit and loss account for the immediately preceding financial year does not exceed two crore rupees or such higher amount as may be prescribed which shall not be more than one hundred crore rupees…”.

    So what is the turnover threashold for getting classified as Small Comapny currently ? Is it two crore, 100 crore or is there any other amount prescribed by the MCA. Pls update.

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

November 2020
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
30