On 1-12-2025, the Ministry of Corporate Affairs notified the Companies (Specification of definition details) Amendment Rules, 2025. This Amendment aims in broadening the scope of a small company under the Companies Act, 2013.
This Amendment came into force on 1-12-2025.
Key Highlights:
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The Amendment Rule modifies Rule 2(1)(t) of the Companies (Specification of Definition Details) Rules, 2014.
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Under the revised provisions, the threshold limit for small companies is raised:
○ Paid-up Capital: Not exceeding ₹10 crores
○ Turnover: Not exceeding ₹100 crores
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This revision widens the coverage of small companies, bringing more entities under the definition.
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By raising the thresholds, the government has ensured that more enterprises benefit from simplified compliance and reduced burdens.
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Expansion of threshold limit for small companies supports MSMEs, incentivizes growth, and aligns with India’s vision towards ease of doing business and fostering entrepreneurship.