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Small Company Amended as on 01.12.2025 SHORT SUMMARY In exercise of the powers conferred by sub-sections (1) and (2) of Section 469 of the Companies Act, 2013 ("CA, 2013"), the Central Government, vide Notification GSR 780(E) dated 01st December 2025 has amended the Companies (Specification of Def
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From December 1st, 2025, a company is considered a small company if its paid-up share capital is not more than 10 Crore rupees and its turnover does not exceed 100 crores rupees as per its last profit and loss account.
Small companies benefit from fewer mandatory board meetings (two per year instead of four), are not required to attach a CARO report or prepare a Cash Flow Statement, and have simplified e-form certifications and abridged director's reports.
Yes, for non-compliance, small companies and their officers are liable to a penalty that is not more than one-half of the specified penalty, capped at a maximum of two lakh rupees for the company.
No, a company does not need to file any specific form to convert itself into a non-small company. It automatically transitions to a non-small company status once it exceeds the defined limits.
A public company, a Section 8 company, or a company that is a holding or subsidiary of any other company cannot be classified as a small company, even if it meets the financial criteria.
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