# How an 'Act' is Formed
## Bill vs. Act
| Bill | Act |
|---|---|
| A draft of a legislative proposal in proper form | A Bill that has become law |
| Not yet enforceable | Enforceable as law |
| Just a proposal | Final legislation |
## Steps from Bill to Act
```
Draft Bill → Introduction in Parliament →
Passed by Lok Sabha → Passed by Rajya Sabha →
Assent of President → Notified in Official Gazette →
Becomes an Act
```
### Definition
> An Act is a Bill passed by both Houses of Parliament and assented to by the President.
> A Bill is a draft of a legislative proposal which, when passed by both Houses of Parliament and assented to by the President, becomes an Act.
## Notification
After receiving the President's assent, the Act is notified in the Official Gazette of India.
## Worked Timeline — The Companies Act, 2013
This is a real-life example of how a major Act came into being:
| Date | Event |
|---|---|
| 4-8-2004 | Concept paper placed on MCA website |
| 3-8-2009 | Companies Bill, 2009 introduced in Lok Sabha |
| — | Recommended changes → Companies Bill, 2011 |
| — | Companies Bill, 2012 introduced |
| 18-12-2012 | Passed by Lok Sabha |
| 8-8-2013 | Passed by Rajya Sabha |
| 29-8-2013 | Received assent of President → became Companies Act, 2013 |
| 30-8-2013 | Notified in Official Gazette |
## Key Takeaways
1. Both Houses must pass the Bill (Lok Sabha AND Rajya Sabha)
2. Presidential assent is essential — only then it becomes an Act
3. Gazette notification completes the public notice requirement
4. There can be multiple iterations of a Bill (2009 → 2011 → 2012 → 2013) before it becomes an Act