The Companies Act 2013 is the principal legislation governing the formation, management, and winding up of companies in India. With 29 Chapters and 470 Sections, it replaced the Companies Act 1956, introducing sweeping reforms in corporate governance, accountability, and compliance. It is administered by the Ministry of Corporate Affairs (MCA).
Structure of the Companies Act 2013
| Chapter | Subject |
|---|---|
| I (Sections 1-2) | Preliminary — Definitions (450+ definitions in Section 2) |
| II (Sections 3-22) | Incorporation of Company |
| III (Sections 23-72) | Prospectus and Allotment of Securities |
| IV (Sections 73-76A) | Share Capital and Debentures |
| V (Sections 77-87) | Acceptance of Deposits by Companies |
| VI (Sections 88-98) | Registration of Charges |
| VII (Sections 99-122) | Management and Administration |
| VIII (Sections 123-127) | Declaration and Payment of Dividend |
| IX (Sections 128-138) | Accounts of Companies |
| X (Sections 139-148) | Audit and Auditors |
| XI (Sections 149-172) | Appointment and Qualifications of Directors |
| XII (Sections 173-195) | Meetings of Board and Its Powers |
| XIII (Sections 196-205) | Appointment and Remuneration of KMP |
| XIV (Sections 206-229) | Inspection, Inquiry and Investigation |
| XV (Sections 230-240) | Compromises, Arrangements and Amalgamations |
| XVI (Sections 241-246) | Prevention of Oppression and Mismanagement |
| XVII (Section 247) | Registered Valuers |
| XVIII (Sections 248-252) | Removal of Names from Register (Strike Off) |
| XX (Sections 270-365) | Winding Up |
| XXIX (Sections 447-470) | Miscellaneous — Fraud, Penalties |
Key Compliance Requirements
- Annual Return (MGT-7/7A): Filed within 60 days of AGM (or 31 December whichever earlier for OPC/small companies)
- Financial Statements (AOC-4): Filed within 30 days of AGM
- AGM: Within 6 months of financial year end (within 9 months for first AGM)
- CSR Report: Mandatory for qualifying companies (Section 135)
- Secretarial Audit: Mandatory for listed companies, paid-up capital >Rs.50Cr or turnover >Rs.250Cr
Corporate Fraud — Section 447
Section 447 is one of the most stringent provisions: fraud involving a company is punishable with imprisonment of 6 months to 10 years and a fine of up to 3 times the amount defrauded. If the fraud involves public interest, minimum imprisonment is 3 years. Fraud is not compoundable.
Key 2024-25 Amendments
- OPC annual return now filed in MGT-7A (simplified form)
- Small companies definition expanded: paid-up capital up to Rs. 4 crore and turnover up to Rs. 40 crore
- Fast-track mergers extended to eligible startups
- Reduced penalty framework for first-time defaults by small companies
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