Launch offer — 25% off with code LAUNCH-25 See plans →
Microlesson · 5-min read

Definition of Company and Applicability of the Act [Sec. 1 & Sec. 2(20)]

# Definition and Applicability of the Companies Act

## Definition of 'Company' — Sec. 2(20)

A Company means a company incorporated under the Companies Act, 2013 or any previous company law.

## Short Title — Sec. 1

The Act may be called the Companies Act, 2013.

## Extent

The Act extends to the whole of India.

## Application — to Whom Does the Act Apply?

The provisions of the Act apply to:

1. Companies incorporated under this Act or any previous company law.

2. Insurance Companies — except where inconsistent with the Insurance Act, 1938 or the IRDA Act, 1999.

3. Banking Companies — except where inconsistent with the Banking Regulation Act, 1949.

4. Electricity Companies — except where inconsistent with the Electricity Act, 2003.

5. Companies governed by a Special Act (e.g., FCI, NHAI) — unless inconsistent with that special Act.

6. Any body corporate specified by the Central Government through notification.

### Key Note — Meaning of 'Except in so far as'

The phrase 'except in so far as' means provisions of the Companies Act will override the corresponding inconsistent provisions of other relevant Acts (Insurance Act, Banking Act, etc.) — i.e., the special Act prevails to the extent of inconsistency.

## 'Body Corporate' or 'Corporation'

Includes: a company incorporated outside India.

Does NOT include:

  • A co-operative society registered under any law relating to co-operative societies; and
  • Any other body corporate (not being a company) which the Central Government may, by notification, specify in this behalf.

Worked example

### Example 1

Example: A banking company is incorporated under the Companies Act, 2013. A particular provision of the Companies Act conflicts with a provision of the Banking Regulation Act, 1949 dealing with the same subject. Which prevails?

Answer: The Banking Regulation Act, 1949 prevails to the extent of the inconsistency. The Companies Act applies to banking companies 'except in so far as' it is inconsistent with the Banking Regulation Act.

### Example 2

Example: Is a co-operative society registered under the Maharashtra Co-operative Societies Act a 'body corporate' under the Companies Act, 2013?

Answer: No. A co-operative society is specifically excluded from the definition of 'body corporate' under the Companies Act, 2013.

⚠️ Common exam mistakes

  • Including co-operative societies within 'body corporate' — they are specifically excluded.
  • Excluding foreign-incorporated companies from 'body corporate' — they are specifically included.
  • Stating that the Companies Act overrides the Banking/Insurance/Electricity Acts — actually, the special Act prevails to the extent of inconsistency.
Bare-Act text Sec. 1 & Sec. 2(20) · Companies Act, 2013 · click to expand
Section 2(20): 'Company' means a company incorporated under this Act or under any previous company law. Section 1: This Act may be called the Companies Act, 2013. It extends to the whole of India.
Now that you've read this — what's next?
Move from understanding → mastery in 3 clicks. Each option below picks up from this lesson's topic.
Start 15-min diagnostic