MCA Raises Small Company Thresholds to Rs. 10 Cr Capital and Rs. 100 Cr Turnover

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  • Last Updated on 3 December, 2025

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MCA small company threshold

Notification No. G.S.R. 880(E); Dated: 01.12.2025

The Ministry of Corporate Affairs (MCA) has issued the Companies (Specification of Definition Details) Amendment Rules, 2025, significantly revising the financial criteria used to classify a company as a small company under the Companies Act, 2013. These amendments aim to ease compliance requirements for a larger segment of businesses and promote ease of doing business.

1. Revised Financial Thresholds

Under the amended rules, the following limits have been enhanced:

1.1 Paid-up Capital

  • Earlier limit – ₹4 crore
  • Revised limit – ₹10 crore

1.2 Turnover (Based on the Previous Financial Year)

  • Earlier limit – ₹40 crore
  • Revised limit – ₹100 crore

These revised thresholds will now apply for determining a small company under Section 2(85) of the Companies Act, 2013.

2. Purpose of the Amendment

The enhancement of thresholds is intended to:

  • Bring more companies under the “small company” category
  • Reduce compliance burden for eligible companies
  • Enable simplified governance, lower filing requirements, and reduced penalties
  • Support the government’s broader objective of improving the business environment and encouraging growth of MSMEs

3. Effective Date

The revised thresholds will come into effect from 01 December 2025.

All companies meeting the updated criteria on or after this date will qualify as small companies for statutory and compliance purposes.

Click Here To Read The Full Notification

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied