Companies (Specification of Definition details) Amendment Rules 2021



Quick Summary
The Ministry of Corporate Affairs has introduced the Companies (Specification of Definition details) Amendment Rules 2021, amending the 2014 rules. These new rules, effective from April 1, 2021, specify the paid-up capital and turnover thresholds for small companies. For the purposes of the Act, a small company will now have a paid-up capital not exceeding two crore rupees and a turnover not exceeding twenty crore rupees.

The Ministry of Corporate Affairs has released the Companies (Specification of Definition details) Amendment Rules 2021, to further amend the Companies (Specification of Definitions Details) Rules, 2014. Read the official notification and provisions of the amended rules below:

MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 1st February, 2021

G.S.R. 92(E).—In exercise of the powers conferred by sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Specification of Definitions Details) Rules, 2014, namely: -

1. Short title and commencement: -

(1) These rules may be called the Companies (Specification of Definitions Details) Amendment Rules, 2021.
(2) They shall come into force on the 1st day April, 2021.

2. In the Companies (Specification of Definitions Details) Rules, 2014, in the rule 2, in sub-rule (1), after clause (s), the following clause shall be inserted, namely:-

Companies Amendment Rules 2021: Small Company Definition

“(t) For the purposes of sub-clause (i) and sub-clause (ii) of clause (85) of section 2 of the Act, paid up capital and
turnover of the small company shall not exceed rupees two crores and rupees twenty crores respectively.”.

[F. No. 1/13/2013 CL-V, Part I]
K. V. R. MURTY, Jt. Secy.

Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 238(E), dated 31st March, 2014 and was last amended vide number G.S.R. 433(E) dated the 7th May, 2018

FAQ :

These are new rules introduced by the Ministry of Corporate Affairs to amend the existing Companies (Specification of Definitions Details) Rules, 2014.

The Companies (Specification of Definition details) Amendment Rules 2021 came into force on the 1st of April, 2021.

A small company's paid-up capital shall not exceed rupees two crores and its turnover shall not exceed rupees twenty crores.

These rules relate to sub-clause (i) and sub-clause (ii) of clause (85) of section 2 of the Companies Act, 2013.

The amendment rules were issued by the Central Government in exercise of the powers conferred by sub-sections (1) and (2) of section 469 of the Companies Act, 2013.




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