New Delhi, July 28 -- The government has proposed increasing the statutory ceiling for paid-up share capital under the definition of a 'small company' from Rs 10 crore to Rs 20 crore through the Corporate Laws (Amendment) Bill, 2026, to provide greater flexibility in line with business growth and economic expansion.

Replying to a question in the Lok Sabha, Finance and Corporate Affairs Minister Nirmala Sitharaman said the existing Rs 10 crore threshold has already reached the current statutory ceiling, necessitating the amendment to enable future revisions based on the scale and nature of businesses.

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