Small Company – Updated Limits

Notification No G.S.R. 700(E) Dated 15th September, 2022

The Ministry of Corporate Affairs has revised the limits of paid up capital and turnover for attaining the status of a Small Company.

The turnover limit has been inceased from Rs.20 Crores to Rs.40 Crores &
Share Capital limit has been increased from Rs.2 Crores to Rs.4 Crores.

The said changes will be effective for the Financial Year 2022 – 2023.

Some of the benefits of a small company

  1. Cash Flow Statements need not be prepared
  2. No mandatory rotation of Statutory Auditors
  3. Mandatory board meetings is 2 instead of 4
  4. Statutory Auditor need not comment on adequacy of the internal financial controls and its operating effectiveness in the auditor’s report
  5. Abridge annual return to be filed instead of a lengthier annual returns.

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