September 16, 2022
Summary of the notification issued by MCA on 15/09/2022
Central Government revises the prescribed maximum share-capital and Turnover for a Small Company
A Small Company is now defined as a company, other than a public company,—
(i) paid-up share capital of which does not exceed Rs 4 crore (as against Rs 2 Crore earlier)
(ii) turnover of which as per profit and loss account for the immediately preceding financial year does not exceed Rs 40 crore (as against Rs 20 Crore earlier)
The companies falling under this definition can benefit from exemptions granted under the Act w.r.t number of Board Meetings, Auditor Rotation, Submission of Cash Flow Statements etc.