• Service: Tax, Mergers & Acquisitions, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 9/20/2013

India - Newly enacted Companies Act, 2013 

September 20: Newly enacted legislation in India replaces the half-century old Company’s Act, 1956.

The Companies Bill, 2012, was passed by both houses (the Rajya Sabha and the Lok Sabha) and received presidential assent in late August 2013 and thus is now known as the Companies Act, 2013.

Effective date provisions

The new law provisions are being phased-in, and provisions requiring statutory/regulatory consultation or functioning of new bodies or prescription of relevant rules/forms are to be made effective after certain actions are completed. A “notification” announces that 98 sections of the new law will be effective beginning from 12 September 2013. Read a KPMG report [PDF 409 KB].

KPMG’s series of reports on Companies Act, 2013

The KPMG member firm in India has produced a series of reports examining provisions of the Companies Act, 2013.

  • The first KPMG report [PDF 404 KB] covers the topic of compromise, arrangements, amalgamations and demergers, and compares material differences under the new provisions relating to arrangements, amalgamations, and demergers to the treatment of similar provisions under the Companies Act, 1956.

  • The second KPMG report [PDF 467 KB] concerns provisions relating to the reduction of capital, buy-back of shares, and buying out of minority shareholders.

  • The third KPMG report [PDF 501 KB] describes provisions in the new law relating to securities and issue / transfer thereof, and deposits and compares these to similar provisions under the prior Companies Act, 1956.

  • The fourth KPMG report [PDF 506 KB] deals with the provisions in the new law and relevant draft rules relating to corporate social responsibility.

  • The fifth KPMG report [PDF 515 KB] concerns provisions relating to management and administration, directors, meetings of the board, and appointment and qualification of managerial personnel.

©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Direct comments, including requests for subscriptions, to
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.


Share this

Share this


Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)

Already a Subscriber? Login

Not a member? Subscribe now