Small Company under the Companies Act, 2013 — New Thresholds and What Changes in Practice
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...