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Rule 46 of the Copyright Rules, 2013: Conditions for Permission to Carry On Copyright Business

An applicant under rule 44 is not eligible unless (i) its memorandum and articles commit it to deal only with the business of issuing or granting licences in specific categories...

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Published
October 1, 2026
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Oct 5, 2026
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Last updated: October 2026Verified against: Government sources

Rule 46 lays down the threshold conditions an applicant must meet before it can even be considered for registration as a copyright society. It requires the founding instrument to commit the body to licensing business and ancillary activities only, requires willingness to follow the Act and Rules, bars sub-licensing of the collection and distribution of royalties, and allows reciprocal agreements with foreign societies.

Which section the rule serves

Rule 46 sits in Chapter XI beside rules 44 and 45 and serves section 33 (registration of copyright societies), with the proviso tied to section 34(2). See our articles on section 33 and section 34. If you are preparing the founding documents of such a body, a legal consultation can help check them against this rule before you file.

Rule 46(1): eligibility

"An applicant referred to in rule 44 for registration of it as a copyright society shall not be eligible to be considered for such registration unless—"

ConditionTextWhat it means
(i)"the instrument by which the applicant is established or incorporated creates a commitment on it to deal with only the business of issuing or granting licences in respect of a right or set of rights in specific categories of works and other activities ancillary thereto"The founding document must itself limit the body to the licensing business and activities that go with it
(ii)"the applicant is willing to comply with the provisions of the Act and the rules made thereunder"A statement of willingness; the text does not say how it is shown

The Explanation. "For the purpose of this chapter 'instrument' means the memorandum and articles of association." So for Chapter XI, the "instrument" is the memorandum and articles. A body that is not a company, such as a trust or a society, would need to read the explanation with care, because the text defines "instrument" only as the memorandum and articles of association and says nothing about other founding documents.

Reading "only"

The word "only" in (i) is strict. The instrument must commit the applicant to deal with only the licensing business and ancillary activities. The text does not define "ancillary", and gives no examples. A body whose articles also list unrelated objects, such as running a publishing house, would not meet the commitment as worded.

Rule 46(2): no sub-licensing of collection and distribution

"The applicant shall not carry out the business by way of sub-licensing or transferring the rights of collection and distribution of royalties in respect of a right or set of rights in specific categories of works to any other person or copyright society."

The point of this sub-rule is that the society must itself collect and distribute royalties for the rights entrusted to it. It cannot pass that function to another person or society. The text uses "applicant", and does not say in terms whether the bar continues after registration. The text of rule 46 does not say whether a registered society can use a service provider for clerical or technical work; the rule bars "sub-licensing or transferring the rights of collection and distribution", not every outsourcing.

The foreign society proviso

"Provided that applicant may enter into agreement with any foreign society or organisation administering rights corresponding to the right or set of rights administered by the applicant to entrust to such foreign society or organisation the administration in any foreign country of the right or set of rights administered by the applicant, or for administering in India the rights administered in a foreign country by such foreign society or organisation under sub-section (2) of section 34 of the Act."

DirectionWhat the applicant may do
OutwardEntrust a foreign society or organisation with administration, in a foreign country, of the rights the applicant administers
InwardAdminister in India the rights that the foreign society or organisation administers in its country
LimitThe foreign body must administer corresponding rights; the agreement is under section 34(2) of the Act

So the bar in sub-rule (2) does not stop reciprocal arrangements. A Mumbai society for musical works can grant a London society the right to collect for Indian music abroad, and can collect in India for the London society's repertoire. The text does not say how royalties are to be accounted between the two bodies.

An example

Chitra Music Authors' Society is formed by eight lyricists and composers. Its memorandum and articles say its objects are to issue and grant licences for the rights of its members in musical and literary works, to collect and distribute royalties, and to run its office and website. That meets rule 46(1)(i). The articles do not mention any publishing or film production. The society later wants to hand the whole job of collecting royalties from radio stations to a private collection agency; rule 46(2) as worded bars sub-licensing or transferring collection and distribution. It may, however, sign a section 34(2) agreement with a foreign society to collect Indian royalties abroad and to administer that society's repertoire in India.

Who does what

PersonRole
ApplicantShows founding instrument and willingness to comply; does not sub-license collection
Registrar of Copyrights and Central GovernmentConsider the application against these conditions
Foreign society or organisationMay be party to a section 34(2) agreement

What rule 46 does not say

  • It does not set the time for a decision; see the article on rule 49 later in this series.
  • It does not define "ancillary", "sub-licensing" or "transferring".
  • It does not say how "willingness to comply" is shown; Form VIII does not carry a separate question on it.
  • It does not mention the Board.
  • No fee appears for rule 46; the Second Schedule has no entry for a society application.

Need help with the founding documents of a society?

A rule 46 problem is usually fixed in the memorandum and articles, before anything is filed. A legal consultation can review the documents and suggest changes in line with the text.

Key takeaways

  • An applicant is eligible only if its memorandum and articles commit it to licensing business and ancillary activities alone.
  • It must be willing to comply with the Act and the Rules.
  • It may not sub-license or transfer the collection and distribution of royalties to another person or society.
  • Reciprocal agreements with foreign societies under section 34(2) are allowed.
  • The text is as notified in 2013 with the 2016 amendment; check later amendments.

Read next

Disclaimer: Based on the Copyright Rules, 2013 as notified (with the 2016 amendment), read with the Tribunals Reforms Act, 2021, as consulted on 1 October 2026. Later amendment rules, forms and fees should be checked in their current form. This article is general information, not legal advice; check the official text before acting.

Quick recapKey facts & short answers

Key Facts About Rule 46

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

What must a society's memorandum and articles say?

That the applicant will deal only with licensing business in specific categories of works and activities ancillary to it.

What does "instrument" mean in Chapter XI?

The memorandum and articles of association (the Explanation to rule 46).

Read the notice the day it arrives; most of the damage is done by the weeks it sits unopened.

— TaxClue Compliance Desk

Rule 46: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

That the applicant will deal only with licensing business in specific categories of works and activities ancillary to it.

The memorandum and articles of association (the Explanation to rule 46).

Not by sub-licensing or transferring the rights of collection and distribution of royalties to another person or copyright society.

Yes. The proviso allows agreements under section 34(2) in both directions for corresponding rights.

No.

The text speaks of the applicant and does not say in terms whether the conditions continue after registration; later rules deal with registered societies and are covered elsewhere in this series.