MCA UPDATE – New Definition for Small Company

MCA has notified an amendment in the Companies (Specification of definition details) Amendment Rules, 2022 that came into force from 15th September, 2022 .

As per the said notification, the threshold limit of small companies as follows:

  1. Paid-up capital shall not exceed Rs. 4 crore ; and
  2. Turnover shall not exceed Rs. 40 crore .

Earlier threshold was ;

  1. Paid-up capital shall not exceed Rs. 2 crore ; and
  2. Turnover shall not exceed Rs. 40 crore .