Small Company Definition Amendment Applicability

The amendment to the definition of a "Small Company" notified by the Ministry of Corporate Affairs on 14th September 2022 (via notification G.S.R. 700(E)) became effective on 15th September 2022.

Key Points:

• Applicability for 31.03.2022: The amendment was not applicable to the financial year ending 31st March 2022. For that period, the previous thresholds (paid-up capital up to ₹2 crore and turnover up to ₹20 crore) remained in force.

• Revised Thresholds (as of 2022): The 2022 amendment increased the limits to a paid-up capital of not exceeding ₹4 crore and a turnover of not exceeding ₹40 crore.

• Current Status: Please note that these thresholds have been revised further. Effective from 1st December 2025, the definition of a Small Company has been updated to include companies with a paid-up share capital not exceeding ₹10 crore and an annual turnover not exceeding ₹100 crore.

Summary: The amendment issued on 14th September 2022 came into effect on 15th September 2022 and was not applicable for the financial year ending 31st March 2022. The thresholds have since been further increased to ₹10 crore (capital) and ₹100 crore (turnover) as of 1st December 2025.