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ARTICLE · 12 DECEMBER 2025

Redefining Small: MCA Introduces Higher Capital & Turnover Limits

BTG Advaya
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The Ministry of Corporate Affairs, Government of India ("MCA") has issued a recent circular which came into force on December 1, 2025...

IndiaCorporate/Commercial Law
Xerxes Antia
Xerxes Antia
Rohit Kudtarkar
Rohit Kudtarkar
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The Ministry of Corporate Affairs, Government of India ("MCA") has issued a recent circular which came into force on December 1, 2025 and which has widened the definition of a 'small company' under the Companies Act, 2013 (the "Act"). A copy of the MCA Circular dated December 1, 2025, is attached for your reference.

Background

Under the provisions of the Act, a "small company" is identified based on prescribed financial thresholds relating to paid-up share capital and turnover along with other conditions.

Revised threshold limits

The latest MCA circular has enhanced the eligibility limits in relation to the paid-up share capital and turnover for classification as a small company. The new thresholds are as follows:

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