Companies Amendment Rules 2025: Key Updates & Compliance

1.

Notification Date

01/12/2025

2.

Subject

Companies (Specification of Definition Details) Rules, 2014 – Amendment

3.

Brief Description

In exercise of the powers conferred under Section 469(1) and (2) of the Companies Act, 2013, the Central Government has notified the Companies (Specification of Definition Details) Amendment Rules 2025, further amending the Companies (Specification of Definition Details) Rules, 2014.

4.

Additional Information

1. Revision of Thresholds for “Small Company”:
The amendment substitutes clause (t) of Rule 2(1) to revise the financial criteria for classification of a small company under Section 2(85) of the Act.

As per the revised limits:

• Paid-up Capital shall not exceed ₹10 crores and
• Turnover shall not exceed ₹100 crores.

These revised limits apply for determining whether a company qualifies as a small company under sub-clauses (i) and (ii) of Section 2(85).

2. Exceptions to Applicability:

The revised definition shall not apply to the following categories of companies:

• A holding company, subsidiary company or wholly owned subsidiary company.
• A company registered under Section 8 of the Companies Act, 2013.
• Any company or body corporate governed by a special Act.

3. Effective Date:

The amendment comes into force from the date of publication in the Official Gazette, i.e., 01/12/2025.

4. Background Reference:

The principal rules were originally notified on 31/03/2014, and the last amendment prior to this notification was made on 15/09/2022.