Companies Act 2013: Definition, Meaning & Guide for Indian Businesses

The Companies Act 2013 is the primary law governing incorporation, management, audit, and winding-up of companies in India. Administered by the Ministry of Corporate Affairs (MCA).

What is Companies Act 2013?

Companies Act 2013 replaced the 1956 Act and is the rulebook for private limited, public limited, one-person companies (OPC), Section 8 companies (non-profits), and Producer Companies. It defines: minimum directors and shareholders, share capital structure, board meetings, AGM requirements, auditor appointment, financial statement formats, related-party transactions, CSR obligations (if turnover > ₹1,000 cr or net worth > ₹500 cr or net profit > ₹5 cr), and corporate governance norms. All filings are done through the MCA portal (mca.gov.in). Compliance with the Act is the difference between a legitimate company and one that gets struck off the register.