Companies Act, 2013: key provisions: notes for bank exams

At a glance

The Companies Act, 2013 replaced the Companies Act, 1956 as India's core company law. It governs how companies are formed, managed, audited and wound up, and it is administered by the Ministry of Corporate Affairs (MCA). It introduced new ideas such as the one person company and mandatory corporate social responsibility (CSR) spending.

Key facts

Presidential assent: 29 August 2013
Commencement: in phases, from 12 September 2013 (with most sections from 1 April 2014)
Administering ministry: Ministry of Corporate Affairs
Filing portal: MCA21, the MCA's e-governance portal
One person company (OPC): defined in Section 2(62) — a company with only one member
CSR: Section 135 — spend 2% of average net profit of the three preceding years
Annual return: Section 92 — due within 60 days of the AGM (Form MGT-7; MGT-7A for OPCs and small companies)
Financial statements: Section 137 — due within 30 days of the AGM (Form AOC-4)
NCLT: constituted under Section 408, with effect from 1 June 2016
FY 2025-26 extended deadlines: AOC-4 to 31 December 2026; MGT-7/7A to 31 January 2027

How it works

CSR (Section 135). A company must form a CSR committee and spend on CSR if, in the previous financial year, it meets any one of these tests:

Test	Threshold
Net worth	₹500 crore or more
Turnover	₹1,000 crore or more
Net profit	₹5 crore or more

The spend is 2% of average net profit (calculated under Section 198) for the three preceding financial years. Foreign companies with a branch or project office in India are also covered.

One person company. The 2013 Act let a single individual form a company with limited liability. Its only member must be a natural person.

Annual compliance. After the annual general meeting (AGM), a company files its financial statements (AOC-4) within 30 days and its annual return (MGT-7 or MGT-7A) within 60 days. Late filing attracts additional fees unless the MCA relaxes the deadline.

NCLT and NCLAT. The National Company Law Tribunal took over the work of the Company Law Board, which was dissolved on 1 June 2016. It hears company law cases and is the adjudicating authority for corporate insolvency under the Insolvency and Bankruptcy Code, 2016. Appeals go to the National Company Law Appellate Tribunal (NCLAT).

Timeline

1956: Companies Act, 1956 enacted
2013: Companies Act, 2013 receives assent (29 August)
2014: Most sections, including CSR, in force from 1 April
2016: NCLT constituted and Company Law Board dissolved (1 June)

Recent developments

24 Oct 2026: An MCA circular extended FY 2025-26 filing deadlines without additional fees — financial statements (AOC-4 and variants) to 31 December 2026 and annual returns (MGT-7/7A) to 31 January 2027 — after MCA21 portal problems. The Institute of Company Secretaries of India had sought the extension. The AGM deadline was not extended.

Exam traps

CSR thresholds are alternatives — meeting any one is enough, not all three.
Net worth is ₹500 crore and turnover ₹1,000 crore; some guides swap them.
Section 92 is the annual return (60 days); Section 137 is financial statements (30 days).
MCA21 is a portal, not a form; MGT-7A is the shorter return for OPCs and small companies.
NCLT replaced the Company Law Board; NCLAT, not the NCLT, hears appeals.

Quick check

Q: Which section of the Companies Act deals with CSR? A: Section 135.
Q: What share of average net profit must be spent on CSR? A: 2% (of the preceding three years).
Q: Under which section was the NCLT constituted? A: Section 408, from 1 June 2016.

Sources

In the news

Every time this topic has appeared in our current affairs, newest first:

26 October 2026MCA extends FY 2025-26 annual filing deadlines