The Ministry of Corporate Affairs vide notification dated 1st February, 2021 has issued the Companies (Specification of Definitions Details) Amendment Rules, 2021 to extend the scope of the term ‘Small Companies’. The Financial Minister declared on the Budget Speech 2021-2022 that the benefits provided for small companies shall be extended to more companies. The amendment provides that from now on, companies with paid up capital and turnover not exceeding rupees two crores and rupees twenty crores respectively shall be considered as small companies.
