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SKAG and Associates
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Small Company Eligibility

Check “small company” status and compliance relaxations.

The Small Company Eligibility checker indicates whether your company qualifies as a small company under Section 2(85) of the Companies Act, 2013, using the limits of paid-up capital up to Rs 10 crore and turnover up to Rs 100 crore that apply from 1 December 2025. Small companies get compliance relaxations such as filing MGT-7A instead of MGT-7 and fewer board meetings. It is for company directors and founders reviewing their obligations.

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Small Company Status

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Generated on 16 October 2026 at skagandassociates.com — for information only, not professional advice

Check whether your company qualifies as a “Small Company” under Section 2(85) of the Companies Act, 2013, read with Rule 2(1)(t) of the Companies (Specification of Definition Details) Rules, 2014 as amended with effect from 1 December 2025. Small companies enjoy significant compliance relaxations including filing of MGT-7A instead of MGT-7, fewer board meetings, and reduced rotation requirements.

Small Company definition (Sec 2(85) read with Rule 2(1)(t)) - revised with effect from 1 December 2025:
  • Paid-up capital ≤ Rs 10 Crore (revised from Rs 4 Cr) AND
  • Turnover ≤ Rs 100 Crore (revised from Rs 40 Cr) as per the profit and loss account for the immediately preceding FY
  • Both thresholds must be satisfied (AND condition).
  • Source: Companies (Specification of Definition Details) Amendment Rules, 2025, notified by MCA vide G.S.R. 880(E) dated 1 December 2025, in force from that date. The earlier limits were Rs 2 Cr / Rs 20 Cr (2021) and Rs 4 Cr / Rs 40 Cr (2022).

NOT eligible (regardless of size):

  • Public Limited Companies
  • Section 8 Companies (Non-Profit)
  • Holding or Subsidiary Companies
  • Companies registered under any Special Act

Benefits of being a Small Company:

  • File abbreviated annual return (MGT-7A) instead of MGT-7
  • Minimum 2 board meetings per year (vs 4 for others)
  • Cash flow statement NOT mandatory in financial statements
  • Lower MCA filing fees
  • Mandatory auditor rotation provisions do not apply
  • Internal audit (Sec 138) not mandatory
  • Reduced penalties for procedural defaults
Important note: This tool provides an indicative output only. It does not factor in every special provision, surcharge, exception, or recent notification. Verify with the firm before acting on any computation.

Frequently Asked Questions

What is a small company under the Companies Act, 2013?
Under Section 2(85) read with Rule 2(1)(t) of the Companies (Specification of Definition Details) Rules, 2014, as amended with effect from 1 December 2025, a small company is a private company with paid-up capital of up to Rs 10 crore and turnover of up to Rs 100 crore in the immediately preceding financial year; both conditions must be met. Public companies, Section 8 companies, holding or subsidiary companies and companies under a special Act cannot qualify.
What are the benefits of being a small company?
Small companies may file the abbreviated annual return MGT-7A instead of MGT-7, need a minimum of two board meetings a year instead of four, are not required to include a cash flow statement, and pay lower MCA filing fees. Internal audit under Section 138 is not mandatory, and penalties for certain procedural defaults are lower.
How does the small company checker work?
You select the company type and enter paid-up capital and last year's turnover. Public, Section 8 and holding or subsidiary companies are shown as ineligible regardless of size, and OPCs are shown separately. For other companies, the tool checks whether capital is within Rs 10 crore and turnover within Rs 100 crore, and lists the relaxations if both conditions are met.

Due in the next 30 days

ROC
  1. Form 8: LLP Statement of Account and SolvencyIn 13 days · ROC
  2. AOC-4: Filing of financial statements with ROCIn 13 days · ROC
  3. MSME-1 for Apr–Sep 2026In 14 days · ROC

Full compliance calendar → Statutory dates, which can be extended by notification. General information only.

Published by SKAG and Associates, Chartered Accountants, New Delhi · Proprietor CA Gaurav Singh (ICAI M.No. 539050). General information only, not professional advice.

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