Impact of Proposed Increase in Small Company LimitsImpact of the Proposed AmendmentIf enacted, the proposed amendment would bring a much larger number of private companies within the definition of “small company”. Therefore, a holding company or subsidiary company cannot become a “small company” merely because its paid-up capital and turnover fall within the prescribed financial limits. Practical Significance of Proposed Small Company LimitsPractical SignificanceThe proposed amendment is important because the concept of a “small company” is gradually moving away from being restricted to very small private companies. Conclusion: Proposed Small Company Limits of ₹20 Crore and ₹200 CroreThe proposed amendment under Clause 18 of the Corporate Laws (Amendment) Bill, 2026 is therefore a major proposed expansion of the “Small Company” regime. The progression can be understood simply as:₹4 crore / ₹40 crore → ₹10 crore / ₹100 crore → proposed ₹20 crore / ₹200 croreHowever, the financial thresholds are only one part of the definition.