Whole of India (by default includes J&K — no separate notification needed)
Commencement
From such date as the Central Government appoints by notification in the Official Gazette. Different dates may be appointed for different provisions.
Applicability
Six classes of entities (see below)
## 3. Applicability – The six classes
The Act applies to:
1. Companies incorporated under this Act or under any previous company law.
2. Insurance companies – except where provisions are inconsistent with the Insurance Act, 1938 or IRDA Act, 1999.
3. Banking companies – except where provisions are inconsistent with the Banking Regulation Act, 1949.
4. Companies engaged in generation or supply of electricity – except where inconsistent with the Electricity Act, 2003.
5. Companies governed by any Special Act (e.g., LIC, RBI) – except where inconsistent with that Special Act.
6. Body corporates incorporated by any Act in force, as may be notified by the Central Government (e.g., FCI, NHAI).
## 4. The 'inconsistency' rule – how to apply it
For classes (b) to (e), the Companies Act applies as a default. If a provision of the Companies Act clashes with the sector-specific statute, the special statute prevails to the extent of the inconsistency. Companies Act provisions that are not inconsistent continue to apply.
Mnemonic – "I-B-E-S" for the conditional four: Insurance, Banking, Electricity, Special Act companies are governed by the Companies Act unless their parent law says otherwise.
## 5. Quick-fire MCQ pointers
Date of assent ≠ date of commencement.
Different sections of the Act can be notified on different dates.
Extent is the whole of India — no exception for any State.
Body corporates of class (f) need a CG notification to be covered; they are not automatically in.
Worked example
### Example 1
Q. A banking company finds that a provision in the Companies Act, 2013 directly conflicts with a provision in the Banking Regulation Act, 1949. Which will prevail?
A. As per Section 1(4)(c), the Companies Act applies to banking companies except where the provision is inconsistent with the Banking Regulation Act, 1949. Hence the Banking Regulation Act will prevail to the extent of the inconsistency. All other (non-conflicting) provisions of the Companies Act will continue to apply.
### Example 2
Q. Is the Food Corporation of India (FCI) covered by the Companies Act, 2013?
A. FCI is a body corporate constituted under a special Act. Under Section 1(4)(f), such body corporates are covered only if notified by the Central Government. Once so notified, the Act applies subject to the exceptions, modifications or adaptations specified in the notification.
### Example 3
Q. Mr. X argues that the Companies Act, 2013 does not apply in Jammu & Kashmir because no separate notification has been issued.
A. Incorrect. The Act extends to the whole of India, which by default includes Jammu & Kashmir. No separate State-specific notification is needed.
⚠️ Common exam mistakes
Confusing the date of Presidential assent (29 Aug 2013) with the date of commencement of substantive provisions (notified separately).
Believing that the Act applies in its entirety to banking/insurance/electricity companies — students forget the 'inconsistency carve-out'.
Assuming every body corporate (including co-operative societies) is automatically covered — class (f) requires a Central Government notification, and co-operative societies are excluded from 'body corporate' itself.
Stating that the Act does not extend to J&K — it does, by default.
Forgetting that different sections of the Act may be brought into force on different dates.
Bare-Act text Section 1 · Companies Act, 2013 · click to expand
Section 1 of the Companies Act, 2013 – Short title, extent, commencement and application.
(1) This Act may be called the Companies Act, 2013.
(2) It extends to the whole of India.
(3) This section shall come into force at once and the remaining provisions of this Act shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act and any reference in any provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
(4) The provisions of this Act shall apply to – (a) companies incorporated under this Act or under any previous company law; (b) insurance companies, except in so far as the said provisions are inconsistent with the provisions of the Insurance Act, 1938 or the Insurance Regulatory and Development Authority Act, 1999; (c) banking companies, except in so far as the said provisions are inconsistent with the provisions of the Banking Regulation Act, 1949; (d) companies engaged in the generation or supply of electricity, except in so far as the said provisions are inconsistent with the provisions of the Electricity Act, 2003; (e) any other company governed by any special Act for the time being in force, except in so far as the said provisions are inconsistent with the provisions of such special Act; and (f) such body corporate, incorporated by any Act for the time being in force, as the Central Government may, by notification, specify in this behalf, subject to such exceptions, modifications or adaptation, as may be specified in the notification.