Under section 2(85) of the Companies Act, 2013, a small company may be one whose turnover as per its…

Under section 2(85)(ii) of the Companies Act, 2013, as amended by the Companies (Amendment) Act, 2017, the turnover limit for a small company is two crore rupees or such higher amount as may be prescribed, which shall not be more than one hundred crore rupees (the ceiling was originally twenty crore rupees). The two-crore figure is the base statutory limit; the operative figure is whatever higher amount the rules prescribe within the ceiling. Section 2(85) also sets a paid-up capital limit (fifty lakh rupees, or a higher prescribed amount not exceeding ten crore rupees) and excludes public companies, holding and subsidiary companies, section 8 companies and companies governed by a special Act.