MCA amends definition of small company



Quick Summary
The Ministry of Corporate Affairs (MCA) has amended the definition of a small company. Under the new rules, the paid-up capital for a small company will not exceed four crore rupees, and its turnover will not exceed forty crore rupees. These changes came into effect from the date of the notification's publication in the Official Gazette.

MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 15th September, 2022

G.S.R. 700(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 Definition Details) Rules, 2014, namely:-

1. Short title and commencement.-

(1) These rules may be called Companies (Specification of definition details) Amendment Rules, 2022.
(2) They shall come into force from the date of their publication of this notification in the Official Gazette.

Small Company Definition Amended by MCA

 2. In the Companies (Specification of definition details) Rules, 2014, in rule 2, in sub-rule (1), for clause (t), the following clause shall be substituted, namely:-

 "(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 four crore and rupees forty crore respectively."

[F. No. 1/13/2013-CL-V, Part I]
MANOJ PANDEY, Jt. Secy.

Note: The principal rules were published in the Gazette of India, Extraordinary, Part-II, section 3, subsection(1) vide number G.S.R.238(E), dated the 31st March, 2014 and last amended, vide number 123 (E), dated the 19th February, 2021.

FAQ :

The paid-up capital for a small company shall not exceed four crore rupees, and its turnover shall not exceed forty crore rupees.

These amendments came into force from the date of their publication in the Official Gazette.

The Companies (Specification of Definition Details) Rules, 2014 have been amended.

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

The notification was issued by the Ministry of Corporate Affairs (MCA) through the Central Government.




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