# Applicability of the Companies Act, 2013 [Section 1]

Section 1 specifies which entities are governed by the Companies Act, 2013. The Act has a wide reach, but with carefully carved exceptions.

## Entities to which the Act applies

### (a) Companies incorporated in India

All companies incorporated in India — whether under the Companies Act, 2013 or under any previous company law (e.g., Companies Act, 1956).

### (b) Special Act Companies

Companies incorporated under the Companies Act, 2013 but regulated by another (special) Act of Parliament.

Important caveat: The Companies Act applies to such companies except to the extent its provisions are inconsistent with the special Act. In case of conflict, the special Act prevails.

> Note: Special Act Company = a company incorporated under the Companies Act, 2013 but regulated by another statute.

> Example: A banking company is incorporated under the Companies Act, 2013 but regulated by the Banking Regulation Act, 1949.

### (c) Body corporates notified by the Central Government (CG)

Any body corporate that the Central Government notifies — the Act will apply to such body corporates to the extent specified in the notification.

## Memory aid

1. All Indian companies → covered

2. Special Act companies → covered, but special Act overrides on conflicting points

3. Notified body corporates → covered by CG notification

Worked example

### Example 1

Example – Special Act Company conflict: XYZ Bank Ltd. is incorporated under the Companies Act, 2013 but is also a banking company under the Banking Regulation Act, 1949. If a particular provision of the Banking Regulation Act conflicts with a provision of the Companies Act, the Banking Regulation Act prevails to that extent. All other provisions of the Companies Act continue to apply normally.

⚠️ Common exam mistakes

Assuming the Companies Act has no application to banking/insurance companies — it does apply; only inconsistent provisions yield to the special Act.
Forgetting that companies incorporated under previous company laws (1956 Act, etc.) are also governed by the 2013 Act.
Overlooking the Central Government's power to notify a body corporate and bring it under the Act's ambit.

Reference: Section 1 — Companies Act, 2013

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