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On December 1, 2025, the MCA issued the Companies (Specification of Definition Details) Amendment Rules, 2025, to amend Rule 2(1)(t) of the Companies (Specification of Definitions Details) Rules, 2014 ('SDD Rules'), to expand the definition of 'small company' (under Section 2(85) of the Act) by revising the maximum limits of: (i) paid-up share capital of small companies from INR 40 million (approx. USD 445,000) to INR 100 million (approx. USD 1.10 million); and (ii) turnover of small companies from INR 400 million (approx. USD 4.4 million) to INR 1 billion (approx. USD 11.1 million). The other requirements for a company to qualify as a 'small company' under Section 2(85) of the Act (i.e., the company not being a public company, a holding or subsidiary company, a company registered under Section 8 of the Act, and the company not being governed under a special law) have not been modified and continue to apply.
Originally published 30 January 2026.
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