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Core Purpose

The Ministry of Corporate Affairs notifies the Companies (Specification of definition details) Amendment Rules, 2025, to amend the definition of 'small company' under the Companies Act, 2013, by revising thresholds for paid-up capital and turnover.

Detailed Summary

This notification, G.S.R. 880(E), issued by the Ministry of Corporate Affairs on December 1, 2025, introduces the Companies (Specification of definition details) Amendment Rules, 2025. These rules, exercising powers under sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), amend the Companies (Specification of definition details) Rules, 2014. Specifically, rule 2, sub-rule (1), clause (t) of the 2014 rules is substituted. The new clause (t) specifies that for the purposes of sub-clause (i) and sub-clause (ii) of clause (85) of section 2 of the Companies Act, 2013, the paid-up capital of a small company shall not exceed rupees ten crores and its turnover shall not exceed rupees one hundred crores. The principal rules, G.S.R. 238(E), were initially published on March 31, 2014, and last amended by G.S.R. 700(E) on September 15, 2022. The amendment rules come into force from their publication date in the Official Gazette.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-01122025-268124 EXTRAORDINARY PART II—Section 3—Sub-section (i) PUBLISHED BY AUTHORITY No. 794] NEW DELHI, MONDAY, DECEMBER 1, 2025 MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, the 1st December, 2025 G.S.R. 880(E).— In exercise of the powers conferred by sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Specification of definition details) Rules, 2014, namely:- 1. Short title and commencement.- (1) These rules may be called the Companies (Specification of definition details) Amendment Rules, 2025. (2) They shall come into force from the date of their publication in the Official Gazette. 2. In the Companies (Specification of definition details) Rules, 2014, in rule 2, in sub-rule (1), for clause (t), the following clause shall be substituted, namely:- "(t) For the purposes of sub-clause (i) and sub-clause (ii) of clause (85) of section 2 of the Act, paid up capital and turnover of the small company shall not exceed rupees ten crores and rupees one hundred crores respectively.". [F. No. Policy-01/5/2022-CL-V-MCA] BAIAMURUGAN.D, Jt. Secy. Note: The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (1), vide number G.S.R. 238(E), dated the 31st March, 2014 and was last amended, vide number 700(E), dated the 15th September, 2022. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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