{"id":11910,"count":1,"description":"

A company may have low paid-up capital and turnover but still fail to qualify as a small company under the Companies Act, 2013. One important reason is the statutory exclusion for holding and subsidiary companies.<\/p>\r\nSection 2(85) excludes a holding company or subsidiary company from the small-company definition. Therefore, satisfying the revised financial limits alone does not establish eligibility.\r\n

Why does the group structure matter?<\/h3>\r\nConsider a private limited company with paid-up share capital of \u20b92 crore and turnover of \u20b915 crore. Those figures fall within the revised financial ceilings introduced from 1 December 2025.\r\n\r\nHowever, if the company is a subsidiary of another company, it falls within a category excluded by Section 2(85). It should not select MGT-7A based only on the financial figures.\r\n\r\nThe same issue can arise for a holding company whose own operations are small. Its legal relationship with another company must be considered.\r\n

What other exclusions should be checked?<\/h3>\r\nSection 2(85) also excludes:\r\n