In a major reform aimed at easing regulatory burdens, the Ministry of Corporate Affairs (MCA) has officially revised the definition of “Small Public Limited Company” under the Companies Act, 2013. As per the new notification issued in October 2025, a public limited company will now qualify as a “small company” if it has a paid-up share capital of up to ₹5 crore and a turnover of up to ₹50 crore in the preceding financial year. This marks a significant increase from the previous thresholds of ₹2 crore and ₹20 crore, respectively, allowing a broader segment of growing businesses to benefit from simplified compliance requirements.

With this redefinition, eligible small public limited companies will now enjoy relaxations in various statutory obligations, including reduced requirements for board meetings, exemptions from internal audits, simplified financial statement formats, and minimal ROC filing fees. These companies will also be permitted to hold fewer board and audit committee meetings, and will not be required to rotate auditors as frequently as larger companies. The revised rules are part of the government’s broader objective to improve the ease of doing business, particularly for startups and emerging ventures transitioning into the public domain.

Industry experts and compliance professionals have welcomed the move, stating that it will lower operational costs and reduce compliance fatigue for thousands of smaller listed companies. The MCA has also confirmed that the revised thresholds will be reviewed periodically to align with inflation and evolving business dynamics. Companies that fall within the new definition are encouraged to self-certify their eligibility and update their classification with the Registrar of Companies (RoC) to avail the benefits. This regulatory relief is expected to encourage more private firms to consider public listing, thereby boosting participation in India’s capital markets.