{"id":11906,"count":1,"description":"<p data-pm-slice=\"1 1 []\">India\u2019s definition of a small company changed on 1 December 2025. Under the revised prescribed limits, paid-up share capital must not exceed \u20b910 crore and turnover must not exceed \u20b9100 crore. The company must also meet the applicable legal conditions and must not fall within the categories excluded by Section 2(85) of the Companies Act, 2013.<\/p>\r\nThe change was introduced through the Companies (Specification of Definition Details) Amendment Rules, 2025. The Ministry of Corporate Affairs said the revised limits were intended to bring more companies within the small-company framework and reduce compliance burdens for eligible businesses.\r\n<h3>What are the revised financial limits?<\/h3>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<th>Measure<\/th>\r\n<th>Revised prescribed limit<\/th>\r\n<\/tr>\r\n<tr>\r\n<td>Paid-up share capital<\/td>\r\n<td>\u20b910 crore<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Turnover<\/td>\r\n<td>\u20b9100 crore<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nBoth conditions must be met. A company with paid-up capital below \u20b910 crore but turnover above \u20b9100 crore should not assume it qualifies. The same applies to a company with turnover below \u20b9100 crore but paid-up capital above \u20b910 crore.\r\n<h3>Who is excluded?<\/h3>\r\nSection 2(85) excludes holding companies, subsidiary companies, companies registered under Section 8, and companies or bodies corporate governed by a special Act. Public companies are also outside the definition.\r\n\r\nThis means that financial figures alone cannot confirm eligibility. A company\u2019s ownership structure and legal status must also be reviewed.\r\n<h3>Is small-company status the same as <a href=\"https:\/\/filingpoint.com\/msme-registration\">MSME registration<\/a>?<\/h3>\r\nNo. The Companies Act definition and the MSME classification have different legal purposes and criteria. A company should not use its Udyam certificate as the only evidence that it qualifies as a small company under company law.\r\n<h3>What should a business do next?<\/h3>\r\nReview the company\u2019s paid-up capital, relevant turnover figures, legal type and ownership structure. Then check the applicable financial year and current MCA instructions before selecting MGT-7 or MGT-7A.\r\n\r\n<strong>Key takeaway:<\/strong> The revised limits broaden the potential eligibility pool, but they do not make every private limited company a small company.","link":"https:\/\/filingpoint.com\/consultants\/india\/what-is-the-new-small-company-definition-in-india\/","name":"What Is the New Small Company Definition in India?","slug":"what-is-the-new-small-company-definition-in-india","taxonomy":"post_tag","meta":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.6.1 (Yoast SEO v28.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What Is the New Small Company Definition in India? - Best Company Registration | Tax Filing Services in Chennai, India<\/title>\n<meta name=\"description\" content=\"Call Filing Point 72999-72500. The Best Company Registration, GST, ROC Filing Consultants. 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