Article · 6 min read

MCA Expands Small Company Definition to ₹10 Cr Capital & ₹100 Cr Turnover

CA Surekha S Ahuja · Sandeep Ahuja & Co. Free Intermediate India

A chartered accountant's note on the December 2025 change to the small company limits, listing the Companies Act relaxations that come with the status.

  • Both tests must be met: paid-up capital up to ₹10 crore and previous-year turnover up to ₹100 crore.
  • A small company needs only two board meetings a year, no cash flow statement and no auditor rotation.
  • Penalties are halved under Section 446B, and the fast-track merger route under Section 233 is open.
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The question it answers

  1. Is my company a 'small company' under the new ₹10 crore and ₹100 crore limits, and what does that save me?

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