Small Company
A private company that Indian company law treats more lightly because of its size: since 1 December 2025, paid-up capital of up to ₹10 crore and turnover of up to ₹100 crore (the limits were ₹4 crore and ₹40 crore). Public companies, holding or subsidiary companies and Section 8 companies cannot qualify.
Why it matters
Small companies need fewer board meetings, no cash flow statement and lower penalties, which saves real time and money. The higher limits mean most startups now stay in the category well into their growth, but an Indian company owned by a foreign parent, as after a flip, is a subsidiary and does not qualify.
For example
A Pune startup with ₹8 crore of paid-up capital and ₹60 crore of revenue counts as a small company after December 2025, so it needs only two board meetings a year instead of four.
Go deeper
Related terms
Also in Starting Up
See how founders actually handle this on Co-founders, team and legal, part of the Starting Up hub.
eChai Partner Brands
The partnership →
