Lenders Law

Q1:  What is the new definition of a “Small Company”? Response:  A company is treated as a  small company  if: It is a  private company; Paid-up capital does not exceed  ₹10 crore; Turnover does not exceed  ₹100 crore. It is  not : a holding company; a subsidiary company; a Section 8 company; governed by any Special Act. Q2: From when do the revised limits apply? Response:  Eligibility shall be checked as on 31st March, 2026 and the benefits/ exemptions shall apply for the following financial year i.e. FY 2026-27 onwards  based on the MCA notification. Q3: If my company crosses ₹10 crore capital or ₹100 crore turnover in the middle of the year, does it immediately lose “small company” status? Response:  No. Eligibility is tested  only on 31st March . Your status for the current year remains unchanged. Q4: If my company falls below the thresholds during the year, does it im...

Ministry of Corporate Affairs, vide Gazette Notification no. G.S.R. 880(E) dated 1st December, 2025, expanded the “small company” bracket (₹10 Cr paid-up capital / ₹100 Cr turnover. With higher financial ceilings, a much larger segment of:  closely-held groups, family-run companies, promoter-driven private companies, now qualify for regulatory relaxations— provided they are not : holding companies, subsidiary companies, section 8 companies, governed by special Acts, public companies. Timing Matters: When Does “Small Company” Status Apply? Small company status is determined: As on the last date of the financial year (31 March); Applies to the immediately following financial year  — without any separate filing or approval requirement. . Mid-year restructuring or financial changes do not alter status immediately . One Subsidiary Can Kill Small Company Status — But Divestment Restores It If a company has even one subsidiary,  it is in...