Latest News

Revised Definition of Small Company (effective 1 December 2025)

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 and revised the criteria to classify a company as a "small company" under section 2(85) of the Companies Act, 2013.

As per the updated Rule (2)(1)(t), with effect from 1 December 2025, a company shall be considered as a small company if:

1. Paid up capital does not exceeds Rs.10 crores, and 

2. Turnover does not exceeds Rs.100 crores

This update impacts a large segment of India's MSME corporate base, allowing them the benefit of reduced compliances and ease of doing business.