The Ministry of Corporate Affairs has notified announcing the change of definition of ‘small company’. The change was proposed by Finance Minister Nirmala Sitharaman while presenting the Union Budget on Monday wherein the paid-up capital increased to ₹2 cr and turnover increased to ₹20 cr. The changes will come into effect from April 1, 2021.
The notification reads, “ . . . . . 2. In the Companies (Specification of Definitions Details) Rules, 2014, in rule 2, in sub-rule (1), after clause (s), the following clause shall be inserted, 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 two crores and rupees twenty crores respectively.”.
The Companies Act 2013 provides certain benefits to the Small companies which includes:-
With the new notified change in definition more companies can now enjoy these benefits improving the ease of doing business for these companies.Subscribe Taxscan AdFree to view the Judgment
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