Company law
Small company threshold raised to Rs 10 crore paid-up capital and Rs 100 crore turnover
- Effective
- 2025-12-01
- Published
- 2025-12-01
- Authority
- Ministry of Corporate Affairs, Government of India
- Notification
- G.S.R. 880(E); Companies (Specification of definition details) Amendment Rules, 2025; F. No. Policy-01/5/2022-CL-V-MCA
By G.S.R. 880(E) dated 1 December 2025 the Ministry of Corporate Affairs substituted rule 2(1)(t) of the Companies (Specification of definition details) Rules, 2014 so that, for the purposes of section 2(85)(i) and (ii) of the Companies Act, 2013, the paid-up capital and turnover of a small company shall not exceed rupees ten crores and rupees one hundred crores respectively. The rules came into force from the date of publication in the Official Gazette.
Read directly from the gazette PDF. Small company status carries through to abridged board reports, exemption from cash flow statements, reduced board meeting frequency, lower filing fees and reduced penalties, so a large number of private companies changed category on 1 December 2025. Previously the limits were Rs 4 crore and Rs 40 crore.
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