In a landmark decision that will significantly ease compliance for thousands of jewellery businesses across India, the Ministry of Corporate Affairs (MCA) has revised the definition of “Small Company” under the Companies Act, 2013, effective 1st December 2025.GJC published and sent  out this important update to the jewellery trade.

New Eligibility Criteria (both conditions to be satisfied):

• Paid-up Share Capital : ≤ Rs.10 Crore (earlier Rs.4 Crore)
• Annual Turnover : ≤ Rs.100 Crore (earlier Rs.40 Crore) (as per the latest audited financial statements)

Any company exceeding even one of the above limits will cease to be a Small Company.

Key Benefits for Jewellers (Private Limited & Family-Owned Firms):

• Only 2 Board Meetings required in a year
• Exemption from mandatory Internal Audit in most cases
• Substantially lower penalties for defaults
• Simplified Annual Return via Form MGT-7A
• No need to prepare Cash Flow Statement in financials
• Exemption from mandatory Auditor Rotation – continue with existing trusted auditors
• Reduced overall compliance cost and administrative burden

GJC advised jewellery firms  to immediately review their Paid-up Capital and Turnover for FY 2024-25 to confirm eligibility and start availing the relaxations from the current financial year itself.