
Companies (Specification of Definition details) Amendment Rules 2021
The Ministry of Corporate Affairs (MCA) on February 01, 2021, has issued the Companies (Specification of Definitions Details) Amendment Rules, 2021. The definition under the Companies Act, 2013 for Small Companies has now been revised by increasing their thresholds for Paid-up capital and Turnover. The paid-up capital and turnover of the small company shall not exceed Rupees 2 Crores and Rupees 20 Crores respectively. This new rule shall come into force on April 01, 2021. The current article briefs the Companies (Specification of Definition details) Amendment Rules 2021.Synopsis of MCA Notification
The following amendment has been made in the Companies (Specification of Definition details) Amendment Rules- A new clause 2(1)(t) has been inserted in Rule 2 which specify the Definitions of Small Companies.
- The definition under the Companies Act, 2013 for Small Companies has now been revised by increasing their thresholds for Paid-up capital from “not exceeding Rs 50 lakh” to “not exceeding Rs 2 crore” and Turnover from “not exceeding Rs 2 crore” to “not exceeding Rs 20 crore”
Companies (Specification of definitions details) Rules, 2014
Other Definitions provided under the Companies (Specification of definitions details) Rules, 2014 is as follows: Certifying Authority - A person who has been granted a licence to issue a Digital Signature Certificate under section 24 of the Information Technology Act, 2000 and the Certified Filing Center (CFC) under the Companies Act Director Identification Number (DIN) - An identification number allotted by the Central Government to any individual, intending to be appointed as director or to any existing director of a company, for his identification as a director of a company- The Director Identification Number (DIN) obtained by the individuals before the notification of these rules shall be the DIN for the Companies Act, 2013
- Director Identification Number (DIN) includes the Designated Partnership Identification Number (DPIN) issued under section 7 of the Limited Liability Partnership Act, 2008
- Business to business and business to consumer transactions, data interchange and other digital supply transactions
- Offering to accept deposits or inviting deposits or accepting deposits or subscriptions in securities, in India or from citizens of India
- Financial settlements, web-based marketing, advisory and transactional services, database services and products, supply chain management
- Online services such as telemarketing, telecommuting, telemedicine, education and information research
- All related data communication services
- Father: Father includes step-father
- Mother: Mother includes the step-mother
- Son: Son includes the step-son
- Son’s wife
- Daughter
- Daughter’s husband
- Brother: Brother includes the step-brother
- Sister: Sister includes the step-sister
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