Ministry of Corporate Affairs Enhances Compliance Thresholds for Companies
The Ministry of Corporate Affairs in India has announced the easing of compliance burdens for businesses as part of the Ease of Doing Business 2.0 reforms. Effective December 1, 2025, the criteria defining a small company will change, increasing the paid-up capital limit from Rs. 4 crores to Rs. 10 crores and the turnover limit from Rs. 40 crores to Rs. 100 crores. These updates are part of broader moves including decriminalizing certain offences, simplifying merger processes, and promoting direct overseas listing. Advanced versions of the MCA21 system have also been launched to streamline processes and improve transparency.
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