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Amendment in small company

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Mridul Basiya

1 Points Posted on 29 April 2022

Is there any amendment in the limit of small company from earlier limit of :
PUSC - 50LAKH
TURNOVER - 2 CRORE ?

Replies (2)

Quick Summary

The definition of a 'small company' has been updated, with new thresholds coming into effect from 1st April 2021. Previously, the limits were a paid-up capital of INR 50 Lakhs and a turnover of INR 2 Crores. The new definition now classifies companies with a paid-up capital of INR 2 Crores or less and a turnover of INR 20 Crores or less as small companies.

Rama chary Rachakonda

Master in Accounts & high court Advocate

9620 Points Posted on 29 April 2022

As per the new definition and threshold limits, companies with a paid-up capital of INR 2 crore or less, and turnover of INR 20 crore or less come are defined as small companies. The earlier threshold was INR 50 lacs or less in paid-up capital and INR 2 crore or less in turnover.