The Companies Act is the backbone of corporate law in India. It governs how companies are formed, managed, and dissolved. The first comprehensive law was the Companies Act, 1956, which regulated Indian companies for nearly 6 decades.
In 2013, a modernized version – the Companies Act, 2013 – was enacted to match global corporate standards, strengthen corporate governance, and simplify compliance.
Today, whether you are a student of company law, a business owner, or a tax professional, understanding these Acts (and having access to their bare acts & PDFs) is crucial.
📌 Quick Fact: According to the Ministry of Corporate Affairs (MCA), India has over 15 lakh active companies registered, all governed by the Companies Act, 2013.
📌 Introduction – The Journey of Indian Company Law
The evolution of company law in India reflects the country's economic development and changing business landscape. The Companies Act, 1956 was a comprehensive legislation that served as the primary regulatory framework for companies for over five decades.
However, with globalization, economic reforms, and the need to align with international standards, the government introduced the Companies Act, 2013. This new legislation brought significant changes to corporate governance, compliance requirements, and shareholder rights.
The 2013 Act emphasizes transparency, accountability, and investor protection while promoting ease of doing business in India.
👉 In short: The Companies Act 2013 made compliance stricter but also simplified incorporation and introduced modern features like One Person Companies, CSR, and NCLT.
📌 Download Section – Official PDFs
Many students, professionals, and entrepreneurs search for:
Always download from official MCA or Government sources, since private websites may share outdated versions.
📌 Bare Act Explanation – How to Read & Why Important
The Bare Act is the raw text of the law – word-for-word as passed by Parliament.
For example, Section 2(20) of the Companies Act, 2013 defines a "Company":
"Company means a company incorporated under this Act or under any previous company law."
Why the Bare Act is important:
Students & Exam Prep – CA, CS, CMA aspirants rely on Bare Acts for accuracy.
Professionals – CAs, lawyers, and tax consultants use Bare Acts in client disputes.
Businesses – Entrepreneurs understand their compliance obligations.
📌 Real-life Example (TaxItEazy Case):
A client running a startup in Mumbai once approached us because his incorporation documents had errors. The Bare Act's clear definition of a "Private Company" (Sec 2(68)) helped our experts rectify his filings quickly, avoiding a ₹50,000 penalty.
Section 135 – Corporate Social Responsibility (CSR)
Section 149 – Appointment of Directors (incl. independent directors)
Section 173 – Board meetings
Section 185 – Loans to directors
Section 248 – Removal of name from Register of Companies
Section 271-302 – Winding up provisions
👉 Note: We'll cover depreciation (Schedule II) in the next section.
📌 Companies Act Depreciation Rates (Overview)
Depreciation rules are crucial for accounting & taxation.
Under the Companies Act, 1956, Schedule XIV prescribed depreciation rates. But under the Companies Act, 2013, Schedule II introduced a useful life approach instead of fixed percentages.
📌 Examples:
Computers: 3 years useful life
Furniture: 10 years useful life
Buildings: 30–60 years depending on usage
💡 Pro Tip:
This change aligned Indian accounting with global standards (IFRS).
👉 Note: A detailed guide on depreciation rates with tables is available in our dedicated depreciation blog.
📌 Why Companies Act Matters Today
For Businesses: Non-compliance can lead to fines up to ₹25 lakhs.
For Investors: Protects shareholder rights.
For Students/Professionals: Foundation of corporate law exams.
📊 Stat Check:
In FY 2022–23, the MCA struck off over 2.4 lakh companies for non-compliance under the Companies Act, 2013.
📌 How TaxItEazy Helps Businesses & Individuals
At TaxItEazy, we not only help clients with ITR filing, GST, and tax planning, but also ensure they remain compliant under the Companies Act.
🔹 Case Study:
One of our corporate clients received a notice for non-filing of annual returns. Our team reviewed the Form 26AS, financial statements, and company documents, guided them through Section 92 (Annual Return) compliance, and prevented a ₹1.5 lakh penalty.
