23 December 2017
Sir please give me a clarification regarding 2(85) of companies Act 2013 for small companies i.e " such higher amount as may me prescribed". Please specify the restricted amount of paid up share capital and turnover for small companies.
25 December 2017
As per Sec.2(85), a small company is a private company having paid up share capital not exceeding Rs.50 Lac and Turnover not exceeding Rs.2 Crore. The word mentioned in the definition as " such higher amount as may be prescribed" means prescribed by MCA in Companies Rules or by some amendment notification. So far no such higher amount has been prescribed by MCA. However, as per the new compnies Amendment Bill, 2017 which has been recently passed by parliament and has awaited for the President Consent. This definition of Smal Company has been changed, as per the Cos. Amendt. Bill, 2017, this limit of Rs.5 cr. and Rs.20 Cr. has been increased to Rs. 10 Cr. and Rs. 100 Cr. respectively to make the scope of small company wider by including more private companies in its coverage.
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