Companies Act, 2013 — Key Provisions
Essential provisions of Companies Act, 2013 for entrepreneurs and business owners — incorporation, compliance, board requirements, audits, CSR, MSME registration, and annual filings.
🏛️ Background
The Companies Act, 2013 replaced the Companies Act, 1956 and received Presidential assent on 29 August 2013. It was notified in phases — most sections came into effect on 1 April 2014. The Act is administered by the Ministry of Corporate Affairs (MCA) through the Registrar of Companies (ROC). It has 470 sections and 7 schedules, covering incorporation, management, accounts, audit, CSR, mergers, and winding up.
🏗️ Types of Companies
| Type | Min Members | Min Directors | Min Capital | Ideal For |
|---|---|---|---|---|
| Private Limited | 2 | 2 | No minimum | Startups, SMEs |
| Public Limited | 7 | 3 | No minimum | Listed companies |
| OPC (One Person) | 1 | 1 | No minimum | Solo entrepreneurs |
| Section 8 (Non-profit) | 2 | 2 | No minimum | Charitable purposes |
📋 Mandatory Annual Compliance
🌱 CSR — Corporate Social Responsibility (Section 135)
Applicable to: Companies with net worth ≥₹500 Cr, or turnover ≥₹1,000 Cr, or net profit ≥₹5 Cr during any of the 3 preceding FYs.
- ✅ Must spend at least 2% of average net profit of 3 preceding FYs on CSR activities
- ✅ CSR Committee required (3+ directors, at least 1 independent)
- ✅ Unspent amount must be transferred to Fund for Unspent CSR Account (within 30 days of FY end) or to Schedule VII fund within 6 months
- ⚠️ Non-compliance: Penalty up to ₹1 crore on company + ₹2 lakh per officer in default
⚠️ Disclaimer
This page is for educational and informational purposes only and does not constitute legal, tax, or financial advice. While we strive for 100% accuracy, laws and regulations change frequently. Always refer to the official gazette notifications, consult a qualified Chartered Accountant (CA), Company Secretary (CS), or legal professional before making any financial or legal decisions. Tenhash is not responsible for any actions taken based on this information. Last reviewed: March 2026.