MCA is reviewing a proposal to increase the mandatory Company Secretary (CS) appointment threshold from Rs. 10 crore to Rs. 25 crore.
Saloni Kumari | Jan 12, 2026 |
Buzz in WhatsApp Groups: Mandatory CS Appointment Limit May Rise to Rs. 25 Crore
Discussions on WhatsApp groups indicate that the Ministry of Corporate Affairs (MCA) is currently analysing the proposal to increase the mandatory appointment limit for Company Secretaries (CS).
As per the circular information, the present requirement applies to companies that have paid-up share capital of Rs. 10 crore and more. However, the proposed amendment suggests that this threshold is anticipated to be increased to Rs. 25 crore and more.
Presently, this is just an expected revision; no official confirmation has been made on this subject yet.
This change is still pending approval. If approved, the compliance burden on small companies will be reduced. The move will align corporate regulations with the changing size and structure of companies in today’s business environment.
From a policy perspective, the proposal indicates a strategic shift in the secretarial compliance framework. Instead of applying a uniform requirement to all companies above a relatively low capital limit, the MCA may be trying to focus stricter compliance on larger entities where governance risks are higher.
Several tax experts believe that if this proposal comes into effect, then this action will appear as a positive step for the CS profession in the long run. The role of Company Secretaries (CS) will become more focused, impactful, and value-driven, instead of being treated as a routine statutory formality. However, there is also a concern like last time. These kinds of proposals lead to panic, confusion, or protests within the professional community before the final action is officially announced.
Whatsapp groups discussions have started mandatory appointment of CS Limit is proposed to be increased to 25 Cr.
I personally feel this move will improve the conditions of CS but I fear like last time, there will be panic and protest. Lets see how it goes this time#CSTwitter pic.twitter.com/A2D7il7hli
— CS Jigar Shah (@FCSJigarShah) January 5, 2026
All will depend on how the government designs the final notification and whether transitional safeguards are provided. As of now, this is just a proposal that is being reviewed; the MCA official notification is still awaited. Until then, staying updated and compliant with the existing legal requirements remains the best approach.
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