Reviewed by CA Nikhil Gupta · Last reviewed 11 October 2026
Check the revised ₹10 crore paid-up-capital and ₹100 crore turnover limits together with statutory exclusions.
A company qualifies as "small" (with reduced compliance) if it isn't a public company, holding/subsidiary, Section 8 company, or governed by a special Act, AND its paid-up capital doesn't exceed ₹10 crore and turnover doesn't exceed ₹100 crore — both financial limits must be satisfied together with the structural exclusions.
Finin2min practical explanation · 11 October 2026
As of 11 October 2026, the small-company limits under Companies Act section 2(85) and the amended Rules are paid-up share capital not exceeding ₹10 crore and turnover not exceeding ₹100 crore. Both limits and every exclusion must be tested.
MCA notification G.S.R. 880(E) effective 1 December 2025 raised the paid-up capital limit from ₹4 crore to ₹10 crore and turnover limit from ₹40 crore to ₹100 crore. Historic year-end classifications require the threshold then in force.
Enter paid-up share capital, not authorised share capital, premium, borrowings or paid-up equity plus reserves. Turnover is derived from the relevant audited financial statements, not a forecast of the next year.
A public company, holding/subsidiary company, Section 8 company, or company/body corporate governed by a special Act does not satisfy the small-company definition merely because its numbers are low. The checker makes the user test these exclusions separately.
Small-company status can change relevant Companies Act compliance relaxations, annual return forms and financial reporting. It does not automatically grant MSME benefits, tax exemption or exemption from all audit requirements.
Private company Alpha has paid-up share capital ₹9.90 crore and preceding audited turnover ₹99 crore with no exclusions: it meets the numerical ceilings. Beta has only ₹1 crore capital and ₹3 crore turnover but is a subsidiary: Beta fails the statutory exclusion despite smaller values. A company at exactly ₹10 crore and ₹100 crore is within the words “not exceed”.
Yes. Paid-up capital and turnover must each not exceed their threshold, and no exclusion may apply.
Not automatically. The Companies Act small-company definition is distinct from income-tax/MSME classifications.
Scope: Checks whether a private company qualifies as a 'small company' under Section 2(85) of the Companies Act, 2013, based on paid-up capital and turnover thresholds, to determine eligibility for compliance relaxations.
Review status: reviewed and approved by CA Nikhil Gupta on 8 July 2026.
Background, worked examples and the rules behind these numbers.