What is the Minimum Turnover for a Private Limited Company in India? [2025 Guide]
What is the Minimum Turnover for a Private Limited Company in India? [2025 Guide]
Starting a Private Limited Company (Pvt Ltd) in India is a popular choice among startups and entrepreneurs. However, many business owners and new founders often wonder, “Is there a minimum turnover required for a Pvt Limited Company?”
The short answer is: No, there is no minimum turnover requirement to register or maintain a private limited company in India. But there are important regulatory thresholds linked to turnover that affect compliance, audit, taxation, and eligibility for schemes.
In this blog, we’ll break down what turnover means, the minimum turnover myth, and what turnover-related compliances a Pvt Ltd company needs to watch out for in India.
📌 Is There Any Minimum Turnover Required to Start or Run a Private Limited Company?
No, there is no mandatory minimum turnover needed to register or continue operating a Private Limited Company.
You can start and operate a Private Limited Company even if:
• You haven’t made any sales yet
• You’re still in the development or setup phase
• Your annual turnover is zero
✅ The Companies Act, 2013 does not mandate a minimum turnover for incorporation or renewal.
💡 Then Why Does Turnover Matter?
While turnover is not a mandatory condition for registration, it plays a crucial role in determining compliance obligations, such as:
• Tax audits
• GST registration
• Applicability of TDS/TCS
• Eligibility for Startup India tax exemption
• Mandatory appointment of auditors
• ROC filings and disclosures
Let’s explore how specific turnover thresholds affect a Pvt Ltd company’s obligations.
📊 Key Turnover-Based Thresholds for Pvt Ltd Companies (FY 2024–25)
| Compliance Requirement | Turnover Threshold |
| GST Registration | Turnover exceeds ₹40 lakh (goods) or ₹20 lakh (services) |
| Mandatory Audit under the Income Tax Act | Turnover exceeds ₹1 crore (or ₹10 crore if digital) |
| Tax Deducted at Source (TDS) applicability | No minimum turnover, but based on payments made |
| Section 44AB Tax Audit | Turnover exceeds ₹1 crore (₹10 crore if >95% digital) |
| MSME Udyam Registration (Medium Enterprise) | ₹100 crore or below |
| Startup India Tax Exemption (80IAC) | Turnover should be under ₹100 crore to be eligible |
| CSR Provisions (Corporate Social Responsibility) | Turnover exceeds ₹1,000 crore in any financial year |
✅ So while there’s no floor limit, turnover triggers important compliance ceilings.
📂 What is Turnover?
Turnover refers to the gross revenue or sales generated by a company during a financial year, excluding taxes and non-operational income.
It is used to:
• Determine audit requirements
• Categorize enterprises under MSME
• Assess tax obligations and exemptions
• Evaluate company performance for loans, funding, or valuation
🧾 What Happens if Turnover is Zero?
A Pvt Ltd company with zero turnover (no sales during the year) must still:
• File Annual Return (Form MGT-7)
• File Financial Statements (Form AOC-4)
• Conduct board meetings and maintain statutory registers
• File Income Tax Return (ITR-6)
• Appoint an auditor and get accounts audited (if applicable)
✅ Even dormant or non-operational companies must comply with basic ROC and tax filings.
🚀 New Companies & Startups: What You Need to Know
If you’re an early-stage startup or small business:
• You can start with zero turnover and build gradually.
• Focus on building legal credibility from day one.
• You may still qualify for Startup India benefits if turnover is under ₹100 crore.
Our team helps startups and founders with:
• Private Limited Company registration
• Turnover-based tax & ROC compliance
• GST, TDS, and MSME registrations
• Startup India DPIIT recognition
🏁 Final Thoughts
There is no minimum turnover required to form or maintain a Private Limited Company in India. However, once your business grows, turnover influences your statutory obligations, audit limits, and tax compliance.
✅ The key is not how much you earn initially, but how well you stay compliant from the beginning.
Let our experts help you register, manage, and scale your Pvt Ltd company with turnover-based guidance and full legal support. https://callmyca.com/pvt
