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The central government has announced a change to the definition of a “small company” under the Companies Act, 2013. To introduce this change, it has amended the Companies (Specification of definition details) Rules, 2014.
These rules came into force on 1 December 2025. Under them, the government has raised the thresholds for a ‘small company’ to Rs. 10 crore in paid-up capital and Rs. 100 crore in turnover.
Here is the official notification. :-
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“MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, the 1st December, 2025
G.S.R. 880(E).— In exercise of the powers conferred by sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Specification of definition details) Rules, 2014, namely:-
1. Short title and commencement.- (1) These rules may be called the Companies (Specification of definition details) Amendment Rules, 2025. (2) They shall come into force from the date of their publication in the Official Gazette.
2. In the Companies (Specification of definition details) Rules, 2014, in rule 2, in sub-rule (1), for clause (t), the following clause shall be substituted, namely:- “(t) For the purposes of sub-clause (i) and sub-clause (ii) of clause (85) of section 2 of the Act, paid up capital and turnover of the small company shall not exceed rupees ten crores and rupees one hundred crores respectively.
[F. No. Policy-01/5/2022-CL-V-MCA] BAIAMURUGAN.D, Jt. Secy."
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Source: MCA Website
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