The Ministry of Corporate Affairs, in a Gazette Notification dated 1st February, 2021, has issued the Companies (Specification of Definitions Details) Amendment Rules, 2021. The Amendment will come in force from 1st April, 2021.
The following has been inserted under Rule 2 (“Definitions”) in sub-rule (1) after clause (s) –
“(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.”
Accordingly, now, for a company to qualify as a small company under the Companies Act, 2013, the paid up capital and turnover of such company must not exceed Rs. 2 crores and Rs. 20 crores respectively.
Source : Ministry of Corporate Affairs
