In a significant move aimed at easing compliance burden for businesses and promoting the growth of India’s micro and small enterprises, the Ministry of Corporate Affairs (MCA) has officially notified the Companies (Specification of Definition Details) Amendment Rules, 2025. The amendments substantially increase the financial thresholds that define a “small company” under the Companies Act, 2013.
According to the notification issued on Monday, the ceiling for paid-up capital for classification as a small company has been enhanced from the earlier limit (₹4 crore) to ₹10 crore, while the turnover limit has been raised from Rs. 40 crore to Rs. 100 crore.
The amendments take immediate effect from December 1, 2025, following their publication in the Official Gazette
The Companies Act, 2013 defines a “small company” under section 2(85), with the specific financial thresholds notified through the Companies (Specification of Definition Details) Rules, 2014. These thresholds determine eligibility for reduced compliance requirements, simplified filings, and exemptions from several regulatory obligations.
The latest amendment replaces clause (t) of rule 2(1) of the 2014 Rules, specifying Paid-up capital shall not exceed ₹10 crore, and Turnover shall not exceed ₹100 crore,
for a company to qualify as a small company under clause (85)(i) and (ii) of section 2 of the Act.
This marks one of the most significant upward revisions in recent years, following the last amendment in September 2022, when the limits were increased to ₹4 crore (paid-up capital) and Rs. 40 crore (turnover).
Notification Details
Notification No. F. No. Policy-01/5/2022-CL-V-MCA
Date: 01.12.2025
