Notification No. G.S.R. 880(E); Dated: 01.12.2025
The Ministry of Corporate Affairs (MCA) has issued the Companies (Specification of Definition Details) Amendment Rules, 2025, significantly revising the financial criteria used to classify a company as a small company under the Companies Act, 2013. These amendments aim to ease compliance requirements for a larger segment of businesses and promote ease of doing business.
1. Revised Financial Thresholds
Under the amended rules, the following limits have been enhanced:
1.1 Paid-up Capital
- Earlier limit – ₹4 crore
- Revised limit – ₹10 crore
1.2 Turnover (Based on the Previous Financial Year)
- Earlier limit – ₹40 crore
- Revised limit – ₹100 crore
These revised thresholds will now apply for determining a small company under Section 2(85) of the Companies Act, 2013.
2. Purpose of the Amendment
The enhancement of thresholds is intended to:
- Bring more companies under the “small company” category
- Reduce compliance burden for eligible companies
- Enable simplified governance, lower filing requirements, and reduced penalties
- Support the government’s broader objective of improving the business environment and encouraging growth of MSMEs
3. Effective Date
The revised thresholds will come into effect from 01 December 2025.
All companies meeting the updated criteria on or after this date will qualify as small companies for statutory and compliance purposes.
Click Here To Read The Full Notification
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