MCA Updates Company Master Data To Show Small Company Status

The Ministry of Corporate Affairs (MCA) has updated the Company Master Data to indicate whether a company qualifies as a Small Company under Section 2(85) of the Companies Act, 2013.

A Small Company is defined as a private company with paid-up capital not exceeding Rs 10 crore and turnover not exceeding Rs 100 crore, excluding holding companies, subsidiaries, Section 8 companies, or entities governed by special acts. This classification affects compliance requirements, as small companies follow simpler reporting formats, file fewer documents, and face lower financial penalties and reduced director liability. By clearly indicating Small Company status in the MCA database, businesses and stakeholders can easily identify applicable legal and regulatory provisions.

The update reduces dependence on manual verification, speeds decision-making, and brings clarity for regulatory authorities, auditors, and company management. MCA said the step will make compliance processes simpler, faster, and more transparent for small companies across India.