THE COMPANIES ACT, 2013

Section 1: Short title, extent, commencement and application

Provisions as mentioned in the Companies Act, 2013

(1) This Act may be called the Companies Act, 2013.

(2) It extends to the whole of India.

(3) This section shall come into force at once and the remaining provisions of this Act shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act and any reference in any provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.

(4) The provisions of this Act shall apply to—

(a) companies incorporated under this Act or under any previous company law;

(b) insurance companies, except in so far as the said provisions are inconsistent with the provisions of the Insurance Act, 1938 or the Insurance Regulatory and Development Authority Act, 1999;

(c) banking companies, except in so far as the said provisions are inconsistent with the provisions of the Banking Regulation Act, 1949;

(d) companies engaged in the generation or supply of electricity, except in so far as the said provisions are inconsistent with the provisions of the Electricity Act, 2003;

(e) any other company governed by any special Act for the time being in force, except in so far as the said provisions are inconsistent with the provisions of such special Act; and

(f) such body corporate, incorporated by any Act for the time being in force, as the Central Government may, by notification, specify in this behalf, subject to such exceptions, modifications or adaptation, as may be specified in the notification.

Easy interpretation of Section 1

• Short title: The Act may be called the Companies Act, 2013.

• Extent: It extends to the whole of India.

• Commencement: Section 1 came into force at once and the remaining provisions of this Act came into force on such date as notified by the Central Government in the Official Gazette. Initially, it was notified on 12th September 2013, and subsequent sections commenced on dates specified by the Central Government.

• Application: The Act applies to all companies incorporated under the Companies Act, 2013 and any other previous company laws, including foreign companies operating in India. However, certain provisions may apply only to specific types of companies such as private, public, or One Person Company (OPC).

Summary Interpretation

Section 1 serves as the introductory gateway to the Act, setting out its legal identity, geographical scope, and enforcement timeline. It ensures clarity on when the Act becomes enforceable and whom it covers, establishing a legal framework for all subsequent sections. Different parts of the Act commenced at different times to allow businesses and regulators adequate time for adjustment and compliance.

Practical Real-Life Example

A business incorporated in India on 12th September 2013 is governed fully by the Companies Act, 2013. For example, if a startup registers as a private limited company in Bangalore on 1st January 2024, it must follow the Companies Act, 2013 rules for incorporation, governance, and compliance, superseding the older Companies Act, 1956.

Key Points / Takeaways

• The act is called the Companies Act, 2013 and applies throughout India.

• Different sections came into force on different dates notified by the Central Government in the official gazette.

• Applies to all companies including those formed under previous laws.

• Establishes the legal foundation for company regulation in India.

Preeti Ma’am discusses Section 1 in detail in these videos:

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