Section 371 of the Companies Act, 2013
Section 371 of the Companies Act, 2013
Title: Companies capable of being registered
✅ Summary of Section 371:
Section 371 allows certain types of existing entities to be registered as companies under the Companies Act, 2013. This provision is part of Chapter XXI, which deals with Companies Authorized to Register under this Act (i.e., entities not originally incorporated under the Companies Act but seeking registration under it).
🧾 Key Points:
Eligible Entities:
The following bodies may apply to be registered as companies under the Act:
Companies formed under previous laws
Societies
Partnerships
Associations or companies with liability limited by guarantee or otherwise
Conditions:
The entity must have a constitution or set of rules that govern it.
It should have the required number of members to register under the Companies Act.
Its purpose or objectives must be lawful under the Act.
Types of Companies They Can Register As:
Limited by shares
Limited by guarantee
Unlimited company
Exclusions:
Entities that are already registered under this Act or prior Companies Acts cannot use this provision again.
Illegal associations (those formed for unlawful purposes or with more members than allowed without registration) are not eligible.
📌 Objective:
The section is meant to bring unregistered or previously differently registered entities into the legal framework of the Companies Act, ensuring better regulation, governance, and access to corporate benefits.
RELATED Blog
0 comments