The Ministry of Corporate Affairs (MCA), vide a notification dated 15th September,2022 has amended
The Companies (Specifications of Definitions Details) Rule, 2014, whereby the definition of small
company has been amended.
The thresholds determining a small company have been enhanced.
➢ The threshold limit for paid-up share capital has been enhanced to Rs. 4 Crores from the
earlier limit of Rs. 2 Crores; and
➢ The threshold limit for turnover as per the Profit and Loss account for the immediately
preceding financial year has been enhanced to Rs. 40 Crores from the earlier limit of Rs. 20
Crores.
