Redefining Small Companies Under India’s Companies Act 2013
- IJLLR Journal
- 2 days ago
- 1 min read
Mr. Rishi Somani, B.A., LL.B., Des Shri Navalmal Firodia Law College, Pune
ABSTRACT
The concept of a “small company” under Section 2(85) of the Companies Act, 2013 has undergone significant transformation through successive amendments, most recently via the Companies (Specification of Definition Details) Amendment Rules, 2025. These reforms have substantially increased the paid-up share capital and turnover thresholds for classification as a small company and have, in turn, widened the pool of entities eligible for a range of compliance relaxations and regulatory exemptions. This paper critically examines the statutory evolution of the small company definition, the latest 2025 amendments, and their interaction with the broader framework of corporate regulation. It analyses key exemptions, compliance impacts, and policy rationale, and evaluates whether the current threshold architecture effectively balances the objectives of ease of doing business, investor protection, and regulatory oversight.
