Paid-up capital and turnover of the small company shall not exceed 

The correct answer is - Rs. 4 crores and 40 crores respectively

Key Points

• Rs. 4 crores and 40 crores respectively
  • The paid-up capital of a small company should not exceed Rs. 4 crores.
  • The turnover of a small company should not exceed Rs. 40 crores in accordance with the latest amendments to the Companies Act.
  • These limits are set to classify a company as a small company for regulatory and compliance purposes.

Additional Information

• Definition of a Small Company
  • As per the Companies Act, a small company is defined based on its paid-up capital and turnover limits.
  • These thresholds are periodically reviewed and updated by the Ministry of Corporate Affairs.
• Benefits for Small Companies
  • Small companies enjoy simplified compliance requirements in areas such as board meetings, financial reporting, and audit requirements.
  • They are also subject to lower fees for various filings and have access to certain government schemes and incentives aimed at promoting small businesses.
• Recent Amendments
  • Recent amendments to the Companies Act have increased the limits for paid-up capital and turnover to classify more companies as small companies, thereby providing them with regulatory relief.
  • These changes are part of the government's efforts to improve the ease of doing business in India.