In a new notification issued on December 1, the government has increased the threshold for small companies. Now, companies with a paid-up capital of up to ₹10 crore and a turnover of ₹100 crore will be considered small companies.

Earlier, the thresholds were ₹4 crore capital and ₹40 crore turnover. The new rules came into effect immediately under the Companies Amendment Act, 2025.

Small companies get several benefits like lower filing fees, lower penalties, simplified board reports, and faster mergers. They are required to hold only one board meeting in each half of the year.