Companies (Specification of Definition details) Amendment Rules, 2025
Short title and commencement. -(1) These rules may be called the Companies
(Specification of definition details) Amendment Rules, 2025.
Notification Dated 01st December,2025
For a Small Company
MCA Notifies Revised Definition of Small Company Under Companies Act, 2013: 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 to revise the criteria for classifying a company as a “small company” under Section 2(85) of the Companies Act, 2013 with effect from 1st December 2025.
- Paid-up Share Capital does not exceed ₹10 crores, and
- Turnover does not exceed ₹100 crores
The notification clarifies that both criteria—paid-up capital and turnover—must fall within the prescribed limits simultaneously.
This notification strengthens the small company framework by formally raising the financial ceiling applicable under sub-clauses (i) and (ii) of Section 2(85). It will allow a huge number of private limited companies to benefit from reduced statutory compliances and streamlined regulatory requirements.
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