ThanhBertie49 at 05:22, 5 May 2026

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{{Short description|Indian company law legislation}}
{{Use dmy dates|date=August 2020}}
{{EngvarB|date=August 2020}}
{{Infobox legislation
| short_title = Companies Act, 2013
| long_title = An Act to consolidate and amend the law relating to companies.
| citation = [https://www.indiacode.nic.in/bitstream/123456789/2114/5/A2013-18.pdf The Companies Act, 2013]
| territorial_extent = [[India]]
| enacted_by = [[Parliament of India]]
| date_signed = 29 August 2013
| signed_by = [[President of India]]
| date_commenced = 12 September 2013 (98 sections)<br />1 April 2014 (184 sections)
| bill = Companies Bill, 2012
| bill_citation = [http://www.mca.gov.in/Ministry/pdf/The_Companies_Bill_2012.pdf Bill No. 121-C of 2011]
| repeals = [[Companies Act, 1956]]
| amended_by = Companies (Amendment) Bill, 2020
| status = In force
}}

The '''Companies Act, 2013''' (No. 18 of 2013) is an [[Act of Parliament|Act]] of the [[Parliament of India]] which forms the primary source of [[Indian company law]]. It received presidential assent on 29 August 2013, and largely superseded the [[Companies Act, 1956]].

The Act was brought into force in stages. Section 1 of this act came into force on 30 August 2013. 98 different sections came into force on 12 September 2013 with a few changes.<ref>{{cite web |title=Commencement Notification Of Companies Act 2013 |url=http://www.mca.gov.in/Ministry/pdf/CommencementNotificationOfCA2013.pdf |url-status=live |archive-url=https://web.archive.org/web/20140111125901/http://www.mca.gov.in/Ministry/pdf/CommencementNotificationOfCA2013.pdf |archive-date=11 January 2014 |access-date=11 January 2014 |publisher=Ministry of Corporate Affairs, India}}</ref><ref>{{cite web |last=Varma |first=Sindhu |title=India: New Companies Act, 2013 – The Cat Is Finally Out |url=https://www.mondaq.com/india/corporate-and-company-law/269316/new-companies-act-2013--the-cat-is-finally-out |url-status=live |archive-url=https://web.archive.org/web/20140328000911/http://www.mondaq.com/india/x/269316/Corporate+Commercial+Law/New+Companies+Act+2013+The+Cat+Is+Finally+Out |archive-date=28 March 2014 |access-date=2023-05-29 |publisher=Mondaq}}</ref> A total of another 183 sections came into force from 1 April 2014.<ref>{{cite news |date=26 March 2014 |title=MCA notifies 183 sections of Companies Act 2013 |newspaper=Business Standards |url=http://www.business-standard.com/article/companies/mca-notifies-183-sections-of-companies-act-2013-114032601009_1.html |url-status=live |access-date=27 March 2014 |archive-url=https://web.archive.org/web/20140327000527/http://www.business-standard.com/article/companies/mca-notifies-183-sections-of-companies-act-2013-114032601009_1.html |archive-date=27 March 2014}}</ref> The [[Ministry of Corporate Affairs]] thereafter published a notification exempting private companies from the ambit of various sections under the act.<ref>{{cite web |url=http://www.companiesact.in/Companies-Act-2013/News-Details/545/%20MCA%20lays%20draft%20notification%20us%20462%20for%20Private%20Companies%20in%20Parliament |title=MCA lays draft notification us 462 for Private Companies in Parliament |access-date=13 February 2015 |url-status=live |archive-url=https://web.archive.org/web/20150213155402/http://www.companiesact.in/Companies-Act-2013/News-Details/545/%20MCA%20lays%20draft%20notification%20us%20462%20for%20Private%20Companies%20in%20Parliament |archive-date=13 February 2015 }}</ref>

The Act increased the responsibilities of corporate executives in the information technology sector, increasing India's safeguards against organised cybercrime by allowing CEOs and CTOs to be prosecuted in cases of IT failure.

The Act established the [[National Company Law Tribunal]] (NCLT), which was constituted on 1 June 2016, based on the recommendation of the [[V. Balakrishna Eradi|Justice Eradi]] committee on the law relating to insolvency and winding up of companies.<ref>{{Cite web |title=Organisation | NCLT |url=https://nclt.gov.in/content/organisation |url-status=dead |archive-url=https://web.archive.org/web/20180321063535/https://nclt.gov.in/content/organisation |archive-date=21 March 2018 |access-date=7 March 2019}}</ref> Further, the [[National Financial Reporting Authority]] (NFRA) was established in March 2018 as an oversight body to investigate matters of professional misconduct by [[chartered accountant]]s or CA firms.<ref>{{citation |title=Cabinet To Notify Audit Regulator NFRA, Approves Draft Rules |date=1 March 2018 |url=https://www.bloombergquint.com/law-and-policy/2018/03/01/cabinet-approves-draft-rules-for-nfra |work=[[Bloomberg Quint]] |archive-url=https://web.archive.org/web/20180302155306/https://www.bloombergquint.com/law-and-policy/2018/03/01/cabinet-approves-draft-rules-for-nfra |url-status=live |archive-date=2 March 2018}}</ref>

Features

Corporate Social Responsibility
Before the Act, [[Corporate social responsibility|corporate social responsibility (CSR)]] requirements applied only to public sector companies.<ref>{{Cite web |date=3 July 2015 |title=A brief history of Indian CSR |url=https://www.gatewayhouse.in/a-brief-history-of-indian-csr/ |url-status=live |archive-url=https://web.archive.org/web/20150810173258/http://www.gatewayhouse.in:80/a-brief-history-of-indian-csr/ |archive-date=10 August 2015}}</ref> Section 135 of the Companies Act introduced mandatory CSR contributions for large companies, making it the only mandatory CSR law in the world. All firms above a particular net worth, turnover, or net profit threshold are required to spend at least 2% of their annual profits of the preceding year on corporate social responsibility. The law requires that all such companies establish a CSR committee to oversee the spending.

=== Company Secretaries ===
Section 203 of the Companies Act 2013 deals with the appointment of a [[company secretary]]. For the first time, the Act defined company secretaries as a key managerial personnel of the company. The Act made it mandatory for every Indian listed company, and every other entity having more than rupees ten crore (100 million) paid up capital, to have a full-time company secretary.

=== Types of companies ===
In addition to private and public limited companies, the Act also provides for a One Person Company (OPC), Section 8 companies, and producer companies. '''OPC'''<ref name=":1">{{Cite web |title=Companies Act, 2013 |url=https://www.mca.gov.in/content/mca/global/en/acts-rules/companies-act/companies-act-2013.html |access-date=2022-09-07 |website=www.mca.gov.in}}</ref> are companies with a single member. Only individual Indian citizens can be shareholders in an OPC. At first, only resident Indians could be shareholders, but after an amendment to the Act in 2020, even non-resident Indians can be shareholders.<ref>{{Cite web |last=Ministry of Corporate Affairs- Government of India |first=MCA e book |title=MCA Amendment Rules - |url=http://www.mca.gov.in/Ministry/pdf/SecondAmndtRules_02022021.pdf |website=mca.gov.in}}</ref> '''Section 8 companies''' are non-profit companies governed by section 8 of the Act. '''Producer Companies''' are formed for agricultural purposes. Only farmers can be members of a producer company members can be farmers. They are governed by Section 378A to Section 378ZT of the Companies Act, 2013.<ref name=":1" />

=== Oppression and Mismanagement ===
Sections 241 and 242 of the Companies Act, 2013 provide remedies to shareholders and members against oppression and mismanagement in company affairs. Section 241 allows eligible members to apply to the National Company Law Tribunal (NCLT) where the affairs of the company are conducted in a manner prejudicial to public interest, oppressive to any member, or detrimental to the company's interests. Section 242 empowers the NCLT to grant appropriate relief, including regulation of company affairs, removal of directors, setting aside or modifying agreements, and other orders necessary to bring an end to the oppressive or prejudicial conduct. These provisions aim to protect minority shareholders and ensure fair corporate governance.<ref>{{Cite web |last=My Legal Pal |first= |title=Understanding Sections 241 and 242 of the Companies Act 2013 |url=https://mylegalpal.com/articles/understanding-sections-241-and-242-of-the-companies-act-2013/|website=My Legal Pal|archive-url=}}</ref>

== See also ==
*[[Indian company law]]
*[[UK company law]]
*[[European company law]]
*[[US corporate law]]

==Notes==
{{reflist|2}}

==External links==
{{toomanylinks|date=February 2025}}
*[http://www.mca.gov.in/Ministry/pdf/CommencementNotificationOfCA2013.pdf Notified sections of Companies Act, 2013]
* [http://www.mca.gov.in/Ministry/actsbills/pdf/Companies_Act_1956_Part_1.pdf Act No. 1 of 1956]
* [http://www.mca.gov.in/Ministry/pdf/Companies_Act_1956_13jun2011.pdf Text of the Companies Act, 1956]
*http://www.mca.gov.in/Ministry/pdf/Companies_Cost_Records_and_Audit_%20amdt_Rules_2015.pdf
* "[http://www.mca.gov.in/Ministry/pdf/General_Circular_8-2015.pdf General Circular No. 08/2015]" by K.M.S. Narayanan, Ministry Of Corporate Affairs.
* http://www.mca.gov.in/Ministry/pdf/Exemptions_to_private_companies_05062015.pdf
* http://www.mca.gov.in/Ministry/pdf/Exemptions_to_Section8_companies_05062015.pdf

[[Category:Acts of the Parliament of India 2013]]
[[Category:Indian company law]]

Companies Act 2013-274004 - Revision history

ThanhBertie49 at 05:22, 5 May 2026