On 1st December 2025, the Ministry of Corporate Affairs (MCA) has amended the definition of Small Companies as per the Companies Act. Now, the Small Company shall be classified as follows:-
Paid up Capital shall not exceed Rs. 10 Crores and Turnover shall not exceed Rs. 100 Crores.
It is pertinent to note that both the criteria are to be fulfilled simultaneously. If the Company goes out of the bracket from any one of the criteria, then the Company shall not be classified as Small Company.
Let’s understand this with the help of an example:
Case 1 – M/s. XYZ Pvt Ltd is a company which is having Rs. 9 Crores paid up capital and Rs. 85 Crores turnover. Then, this company shall be classified as “Small Company”.
Case 2 – M/s. XYZ Pvt. Ltd. is a company which is having Rs. 9 Crores paid up capital and Rs. 115 Crores turnover. In this case, the company shall not be treated as “Small Company”.
To download the Notification, click here Small Company definition amendment
