Companies bill 2012

The first limit of paid up share capital of Rs. 50 lakhs and turnover of Rs. 2 crores for identification of small companies shall be applicable as long as no notificiation/rules prescribing higher amount is issued.

Probably the intent of the legislature is to keep some flexibility in norms relating to small companies both in terms of paid up share capial and turnover. But yes the definition of small companies should have been  made simple rather than leaving a scope for prescribing the upper limit of paid up share capital and turnover.

Rakhee,

As in the Bill, upper limit id defined, this could be for the distinction of small companies from other class or classes.

It says that Paid-up Capital which is between 50 lakh and 5 crores shall be considered in this term.