The Ministry of Corporate Affairs (MCA), for the objective of facilitating compliance burden for businesses and promoting the growth of India’s micro and small enterprises, has officially notified the Companies (Specification of Definition Details) Amendment Rules, 2025. The revisions surge the financial limits that specify a small company under the Companies Act, 2013.
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From the notification issued, the ceiling for paid-up capital for classification as a small company has been enhanced to ₹10 crore from the earlier limit (₹4 crore), and the turnover limit has been raised to Rs 100 crore from Rs 40 crore.
From December 1, 2025, the amendments shall come into force after their publication in the official Gazette.
The Companies Act, 2013 describes a “small company” u/s 2(85), with the explicit financial thresholds notified via the Companies (Specification of Definition Details) Rules, 2014. These thresholds determine eligibility for reduced compliance requirements, simplified filings, and exemptions from various regulatory obligations.
The latest amendment overrides clause (t) of rule 2(1) of the 2014 Rules. It states that for a company to qualify as a small company under clause (85)(i) and (ii) of section 2 of the Act, its paid-up capital must not exceed ₹10 crores, and its turnover must not exceed ₹100 crores.
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In recent years, the same specifies one of the most influential upward revisions after the last amendment in September 2022, when the limits were surged to Rs 4 crore (paid-up capital) and Rs 40 crore (turnover).
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