New Definition of Small Company: The Ministry of Corporate Affairs (MCA) has issued notification regarding the Companies (Specification of Definition details) Amendment Rules 2022.
Rule 2(1)(t) as inserted by the Companies (Specification of Definition details) Amendment Rules 2022:
| Particulars | Old | New |
|---|---|---|
| Paid up Share Capital; and | 2 Crore | 4 Crore |
| Turnover | 20 Crore | 40 Crore |
| Not Exceed |
Read the official Notification Issued by the Ministry of Corporate Affairs (MCA):
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
- 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.
The new definition of small company will give many relaxation from compliances under the companies act, 2013.