Thursday, September 16, 2021

Small Company - Amended Widened Criteria Under Companies Act 2013


The definition under section 2(85) of Small Company under the Act has not been amended, however, clause (t) of Rule 2 (1) of Companies (Specification of Definitions Details) Amendment Rules, 2021  vide Notification No. G.S.R. 92(E). dated, 1st February, 2021 wef 01st April 2021 reads as follows:

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

Therefore, the meaning of Small Company has revised been as follows:

Criteria for Small Company

Old (Maximum i.e not to exceed)

New (Maximum i.e not to exceed)

 

Applicability

F.Y. 2020-21

F.Y.2021-22 onwards

 


Paid-up share capital

Rs. 50 lacs

Rs. 2 crore

 

Turnover (as per profit and loss account for the immediately preceding FY)

Rs. 2 crores

Rs. 20 crores

 

Provided that nothing in this clause shall apply to—

(A) a holding company or a subsidiary company;

(B) a company registered under section 8; or

(C) a company or body corporate governed by any special Act;