The Ministry of Corporate Affairs (MCA) has notified the Companies (Specification of Definition Details) Amendment Rules, 2025 vide circular dated 1st December, 2025, published in the Official Gazette. The amendment comes into effect from the date of its publication in the Official Gazette.
Earlier Criteria:
A company was considered a Small Company if it met both of the following criteria–
- Paid-up capital of up to Rs. 4 crore, and
- Turnover of up to Rs. 40 crores.
Revised Criteria (as per the 2025 Amendment):
A company will now qualify as a Small Company if it meets both of these enhanced thresholds: –
- Paid-up capital of up to Rs. 10 crore, and
- Turnover of up to Rs. 100 crores.
What this means:
More companies will now fall under the Small Company category and will be able to avail various benefits such as reduced compliance requirements, simplified filings, lower penalties, and easier governance norms.
Note:
Copy of egazette notification dated: December 01, 2025 can be accessed at below link:
https://www.mca.gov.in/bin/dms/getdocument?mds=CViJxHWXV1QAr0wxTM5lCA%253D%253D&type=open
