Accounting And Audit 3 November 2026
India's 2025 MCA Reforms Tighten Small Company Limits
India’s Ministry of Corporate Affairs has introduced sweeping 2025 reforms that lower the turnover and asset thresholds for small companies, tighten limits on private placement, and impose mandatory KYC verification for directors. The changes aim to boost compliance and reduce regulatory burden for larger firms while tightening oversight of smaller entities, and also streamline filing procedures with new electronic reporting standards.
Key Highlights
- Small company turnover limit reduced to ₹50 crore and asset limit to ₹20 crore.
- Director KYC now mandatory, with annual verification.
- Simplified filing and electronic reporting introduced.
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