The Ministry of Corporate Affairs (MCA) amended the Companies (Specification of definition details) Rules, 2014 on December 1, 2025, significantly increasing the financial thresholds for “Small Company” classification under Section 2(85) of the Companies Act, 2013. The new limits have been raised from ₹4 Crores to ₹10 Crores for Paid-up Capital and from ₹40 Crores to ₹100 Crores for Turnover, allowing more companies to benefit from small company status. Companies falling under this expanded definition will enjoy several compliance relaxations including exemption from Cash Flow Statements, reduced board meetings (two instead of four annually), auditor rotation exemption, simplified Annual Return (Form MGT-7A), and lesser penalties for non-compliance. This amendment is effective immediately from December 1, 2025, providing significant relief to a larger segment of companies.