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Companies (Specification of Definition Details) Amendment Rules 2022

The Ministry of Corporate Affairs has released a notification as on 15th September 2022. MCA notification states certain amendments made by the Central Government making the rules further in order to amend the Companies (Specification of Definition details) Rules. As declared by the mca department, the mca amendment shall come into force from the date of publication of the notification in the Official Gazette.

This notification is substituting the clause given in Section 2 (85) of the Companies Act 2013. The Section 2 (85) denotes the definition of a small company. The small company under companies act 2013 means:-

A company that is other than a public company having :-

  • paid up share capital that must not exceed Rs. 50 Lakh or such higher amount as many be prescribed which shall not be more than Rs. 5 Crore; or
  • turnover of which as per the last profit and loss account must not exceed Rs. 2 Crore or such higher amount as may be prescribed which shall not be more than Rs. 20 Crore rupees

Provided that nothing in this clause shall apply to:-

  • a holding company or subsidiary company;
  • a company registered under section 8; or
  • a company or body corporate governed under any special Act

Now as per the amendment released by MCA:-

“(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 four crore rupees and forty crore respectively”

Here is the official document that you look into:-

MINISTRY OF CORPORATE AFFAIRS

NOTIFICATION

New Delhi, the 15th September, 2022

G.S.R. 700(E).—In exercise of the powers conferred by sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Specification of Definition Details) Rules, 2014, namely:-

  1. Short title and commencement.- (1) These rules may be called Companies (Specification of definition details) Amendment Rules, 2022.

(2) They shall come into force from the date of their publication of this notification in the Official Gazette.

  1. In the Companies (Specification of definition details) Rules, 2014, in rule 2, in sub-rule (1), for clause (t), the following clause shall be substituted, 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 four crore and rupees forty crore respectively.”.

[F. No. 1/13/2013-CL-V, Part I]
MANOJ PANDEY, Jt. Secy.

Note : The principal rules were published in the Gazette of India, Extraordinary, Part-II, section 3, subsection(1) vide number G.S.R.238(E), dated the 31st March, 2014 and last amended, vide number 123 (E), dated the 19th February, 2021.

This was the latest MCA Update, we have presented before you to inform you about the new MCA amendment release regarding the definition of small company.

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