Under section 2(85) of the Companies Act, 2013, one of the conditions for a company to be a small…

Under section 2(85) of the Companies Act, 2013, as amended by the Companies (Amendment) Act, 2017, a small company is a company, other than a public company, whose paid-up share capital does not exceed fifty lakh rupees or such higher amount as may be prescribed (not more than ten crore rupees) and whose turnover as per its profit and loss account for the immediately preceding financial year does not exceed two crore rupees or such higher amount as may be prescribed (not more than one hundred crore rupees). Before 2017 the outer ceilings were five crore and twenty crore rupees and either condition sufficed. A holding or subsidiary company, a section 8 company and a company governed by a special Act cannot be a small company.