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Microlesson · 5-min read

Definition of a Company [Section 2(20)]

# Definition of a Company — Section 2(20)

## Statutory Definition

As per Section 2(20) of the Companies Act, 2013:

> 'Company' means a company incorporated under the Companies Act, 2013 or under any of the previous laws relating to companies.

## Breaking Down the Definition

A company can be:

  • A company incorporated under the current Act (2013), OR
  • A company incorporated under a previous company law (e.g., Companies Act, 1956)

## Why This Matters

The definition ensures continuity — companies incorporated before 2013 continue to be treated as 'companies' under the new Act without re-registration.

## Memory Tip

Think of Section 2(20) as the 'umbrella definition' — it covers both new and old companies under one roof.

Worked example

### Example 1

Q: Define 'company' as per the Companies Act, 2013.

A: As per Section 2(20), 'company' means a company incorporated under the Companies Act, 2013 or under any of the previous laws relating to companies.

⚠️ Common exam mistakes

  • Quoting the wrong section number — it is 2(20), not 2(21) or 2(22)
  • Limiting the definition to companies incorporated only under the 2013 Act, ignoring previous laws
  • Confusing 'company' definition with 'corporate body' or 'body corporate'
Bare-Act text Section 2(20) · Companies Act, 2013 · click to expand
'Company' means a company incorporated under this Act or under any previous company law.
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