Amendment in definition of Small Company

Amendment in definition of Small Company  

Ministry of Corporate Affairs has vide  Companies (Removal of Difficulties) Order, 2015, dated 13^th February 2014 amended definition of “Small Companies”. As per this order, in section 2, in clause (85), in sub-clause (i), for the word "or" occurring at the end, the word "and" shall be substituted;

The amended sub section (85) of section 2 of the Companies Act, 2013 is as below:

2(85) ‘‘small company’’ means a company, other than a public company,—

(i)                 paid-up share capital of which does not exceed fifty lakh rupees or such higher amount as may be prescribed which shall not be more than five crore rupees;  or     and

(ii)               turnover of which as per its last profit and loss account does not exceed two crore rupees or such higher amount as may be prescribed which shall not be more than  twenty crore rupees:

Provided that nothing in this clause shall apply to—

a.      a holding company or a subsidiary company;

b.      a company registered under section 8; or

c.       a company or body corporate governed by any special Act;

You can download the order from the following link

http://www.mca.gov.in/Ministry/pdf/ROD_1st_2015.pdf

Thanks & Regards:

KASHIF ALI & ASSOCIATES

Company Secretaries

268, Business India Complex,

Uday Park, New Delhi-110049

Call us : +91 9718483209