MCA Expands Small Company Criteria, Raising Capital to ₹10 Crore and Turnover to ₹100 Crore

The Ministry of Corporate Affairs notified the Companies (Specification of Definition Details) Amendment Rules, 2025, revising the eligibility criteria for small companies.

The notification (G.S.R. 880(E), dated 1 December 2025) raised the paid-up capital limit to ₹10 crore and the turnover limit to ₹100 crore, both of which must be satisfied simultaneously.

The amendment aims to widen the category of small companies and reduce compliance burdens. Small companies can now file simpler returns, hold fewer board meetings, avoid mandatory dematerialisation under Rule 9B, and benefit from relaxed governance and audit requirements.

The revised rules take effect from the date of their publication in the Official Gazette.