# How an Act is Enacted
Understanding how a statute like the Companies Act, 2013 comes into existence is essential — it explains why Rules, Notifications, and Gazette publication are all relevant.
## Hierarchy of Government
```
Central Government
|
+---------+---------+
| | |
Ministry Ministry Ministry of
of of Home Affairs
Corporate Finance
Affairs
(MCA)
```
- Ministry of Corporate Affairs (MCA) is the administrative ministry for the Companies Act, 2013.
## Steps in Enactment of an Act
1. Drafting of the Bill by the concerned Ministry (e.g., MCA for company law).
2. Introduction in Lok Sabha (House of People) — Money Bills can only be introduced here.
3. Passage in Lok Sabha (debate, voting).
4. Passage in Rajya Sabha (Council of States). Note: Rajya Sabha cannot reject a Money Bill, only recommend changes.
5. President's Assent — once both Houses pass the Bill, it is sent to the President.
6. The Bill becomes an Act upon Presidential assent.
7. Publication in the Official Gazette of the Government of India.
8. The Act becomes applicable from the date notified in the Gazette (which may be different from the date of assent).
## Why Gazette publication matters
No law is enforceable until it is officially published in the Gazette. The Companies Act, 2013 received Presidential assent on 29 August 2013 but different sections were notified on different dates.