Section 2(…) of the Companies Act 2013, provides the definition for a Small company.
The definition has last been revised on 2nd December 2025, vide notification number ……… The table below gives the limits prescribed for the Small company
| Turnover | Paid-up Capital | |
| w.e.f. 2nd December 2025 | <=100 crores | <= 10 crores |
| 2022 | <=40 crores | <=4 crores |
Benefits for Small Companies
- Fewer Board Meetings: Only two required per year (instead of four).
- Simplified Financials: Not required to prepare a Cash Flow Statement.
- Auditor Rules: Exempt from mandatory auditor rotation and reporting on internal financial controls.
- Abridged Returns: Can file abridged annual returns and financial statements