India, Dec. 3 -- The Ministry of Corporate Affairs (MCA) has revised upwards the criteria for entities to qualify as a small company. As per a notification issued by the ministry, an entity with a paid-up capital of INR 10 Cr and a turnover of INR 100 Cr will qualify to be a small company.

With the move, the entities which qualify to be a small company will see a sharp increase. The revision marks the government's third threshold hike in under a decade, reflecting a continued emphasis on reducing compliance burdens to push growth upwards.

The rules were last amended in 2022, when the paid-up capital threshold for small companies was revised to INR 4 Cr from INR 2 Cr earlier and the turnover was increased to INR 40 Cr from INR 20 Cr prev...