The Ministry of Corporate Affairs (MCA), through Notification G.S.R. 880(E) dated 1 December 2025, has amended the Companies (Specification of Definition Details) Rules, 2014. The amendment revises the financial thresholds for classifying a company as a “small company” under Section 2(85) of the Companies Act, 2013, effective 1 December 2025.
Under the updated Rule 2(1)(t), a company will qualify as a small company if both of the following conditions are met:
Paid-up share capital does not exceed ₹10 crore; and
Turnover does not exceed ₹100 crore.
The notification explicitly states that both criteria must be satisfied simultaneously for classification as a small company.
This amendment significantly broadens the scope of the small company framework, allowing more entities to benefit from relaxed compliance requirements, simplified filings, and reduced regulatory burden as envisaged under the Act.
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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.
Note: The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (1), vide number G.S.R. 238(E), dated the 31st March, 2014 and was last amended, vide number 700(E), dated the 15th September, 2022.