Jammu and Kashmir has recorded 9,511 companies classified as ‘small companies’ under the Companies Act, 2013, while the Union Territory of Ladakh has 60 such entities, according to data presented to the Rajya Sabha by the Union Ministry of Corporate Affairs.
The Chenab Times has learned that these figures, reflecting the status as of July 23, 2026, position Jammu and Kashmir ahead of Himachal Pradesh, which has 6,761 small companies. However, both Punjab, with 28,307, and Haryana, with 78,149, registered a significantly higher number of small companies.
Ladakh’s count of 60 companies places it among the lowest in the country for Union Territories and states, with only Lakshadweep, reporting 46, having fewer small companies.
Nationally, the total number of companies designated as ‘small companies’ under the Companies Act, 2013, stands at 19,01,589. Jammu and Kashmir’s contribution represents approximately 0.5 per cent of this national total, while Ladakh accounts for less than 0.01 per cent. The Union Government’s response did not include population-adjusted data or a national average, thus precluding any per-capita comparisons or rankings based on such metrics.
At the state level, Maharashtra leads with the highest number of small companies, totaling 3,40,052. This is followed by Delhi, which has 2,38,507 small companies, Uttar Pradesh with 1,71,310, West Bengal at 1,38,842, and Karnataka with 1,34,024. Other states with substantial numbers include Tamil Nadu (1,28,264), Telangana (1,19,283), and Gujarat (1,05,538).
Further data indicates that Rajasthan has 69,495 small companies, Kerala 65,575, Bihar 56,323, Madhya Pradesh 48,783, Andhra Pradesh 39,990, Odisha 33,041, and Assam 14,938. Chhattisgarh registered 14,492 and Uttarakhand 14,241 small companies.
The Ministry of Corporate Affairs clarified that the criteria for classifying a company as ‘small’ have been progressively revised since the inception of the Companies Act, 2013. Initially, from April 1, 2014, the threshold was set at a paid-up share capital not exceeding Rs 50 lakh and a turnover not exceeding Rs 2 crore. These limits were subsequently increased to Rs 2 crore for paid-up share capital and Rs 20 crore for turnover, effective from April 1, 2021.
The thresholds underwent another revision, effective September 15, 2022, raising the paid-up share capital limit to Rs 4 crore and the turnover limit to Rs 40 crore. The most recent adjustment, implemented from December 1, 2025, further increased these limits to Rs 10 crore for paid-up share capital and Rs 100 crore for turnover.
In response to Rajya Sabha Unstarred Question No. 1015, answered on July 28, 2026, the Union Government stated that there is currently no proposal under consideration to establish a target timeline for reducing the annual regulatory compliance burden on micro-enterprises.
The information was provided by Minister of State in the Ministry of Corporate Affairs and Ministry of Road Transport and Highways, Harsh Malhotra, in his written reply to the parliamentary question.
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