Companies (Specification of Definitions Details) Rules, 2014.
New Rule:
Companies (Specification of Definitions Details) Amendment Rules, 2022
Notification details:
In exercise of powers conferred under subsection (1) & (2) of section 469 of Companies Act 2013, MCA has issued an notification dated 15th September 2022 amending Companies (Specification of Definitions Details) Rules, 2014, as per which there is an increase in the threshold limit of paid up capital & turnover limits applicable wrt definition of small companies.
Previously, there was an amendment on 1st February 2021, taking effect from April 2021 stating that Companies with paid up capital of upto Rs. 2 Crore and turnover of up to Rs 20 crore were considered/ defined as “Small companies”.
According to the latest notification, definition of ‘Small Companies’ has further been revised by increasing the thresholds for paid up capital from “not exceeding Rs 2 crore” to “not exceeding Rs 4 crore” & the turnover has been increased from “not exceeding Rs 20 crore” to “not exceeding Rs 40 crore”.