Companies Act 2013
The Companies Act 2013 is an Act of the Parliament of India which regulates incorporation of a company, responsibilities of a company, directors, dissolution of a company. The 2013 Act is divided into 29 chapters containing 470 sections as against 658 Sections in the Companies Act, 1956 and has 7 schedules. The Act has replaced The Companies Act, 1956 (in a partial manner) after receiving the assent of the President of India on 29 August 2013. The Act came into force on 12 September 2013 with few changes like earlier private companies' maximum number of members was 50 and now it will be 200. A new term of “One Person Company” is included in this act that will be a private company and with only 98 provisions of the Act notified. A total of another 184 sections came into force from 1 April 2014.
Key Highlights of Indian Companies Act 2013
The maximum number of members (shareholders) permitted for a Private Limited Company is increased to 200 from 50.
One-Person company.
Section 135 of the Act which deals with Corporate Social Responsibility.
Company Law Tribunal and Company Law Appellate Tribunal.
There are various kinds of companies like public, private or government-owned that operate in a country. Depending on their particular nature suitable rules and regulations have to be formulated for each kind of company. Every country has specific rules and regulations applicable to home-grown companies. Similarly, a company operating in a country other than its home country is required to follow the rules and regulation of the given local area of operation and the home country where it was originally incorporated. In India, a foreign company is mandated to follow special or modified provisions as compared to a domestic company. For instance, a foreign company at the time of making investment in India or setting up an office is required to comply with the Foreign Exchange Management Act (FEMA). Similarly, if the foreign company is involved in selling goods or providing services then it is required to comply with the Indian tax laws.











