Formation of company
Section 3 of the Companies Act, 2013 deals with formation of company. A company may be formed for any lawful purpose by-- (a) seven or more persons, where the company to be formed is to be a public company; The Act came into force on 01 Apr 2014.
(1) A company may be formed for any lawful purpose by--
(a) seven or more persons, where the company to be formed is to be a public company;
(b) two or more persons, where the company to be formed is to be a private company; or
(c) one person, where the company to be formed is to be One Person Company that is to say, a private company,
by subscribing their names or his name to a memorandum and complying with the requirements of this Act in respect of registration:
Provided that the memorandum of One Person Company shall indicate the name of the other person,with his prior written consent in the prescribed form, who shall, in the event of the subscribers death or his incapacity to contract become the member of the company and the written consent of such person shall also be filed with the Registrar at the time of incorporation of the One Person Company along with its memorandum and articles:
Provided further that such other person may withdraw his consent in such manner as may be prescribed:
Provided also that the member of One Person Company may at any time change the name of such other person by giving notice in such manner as may be prescribed:
Provided also that it shall be the duty of the member of One Person Company to intimate the company the change, if any, in the name of the other person nominated by him by indicating in the memorandum or otherwise within such time and in such manner as may be prescribed, and the company shall intimate the Registrar any such change within such time and in such manner as may be prescribed:
Provided also that any such change in the name of the person shall not be deemed to be an alteration of the memorandum.
(2) A company formed under sub-section (1) may be either--
(a) a company limited by shares; or
(b) a company limited by guarantee; or
(c) an unlimited company.
Section 3, The Companies Act, 2013 (Act 18 of 2013).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Made under this section, and citing it
32 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
- SO 1242(E) Designation of Special Court in State of Jharkhand dated 15.03.2023Notification 2023
- G.S.R 643(E) companies Incorporation Third Amendment Rules 2022 dated 18.08.2022Rule 2022
- G.S.R NO. 363 Companies (Incorporation) second Amendment Rules 2022 dated 20.05.2022Rule 2022
- Companies (Accounting Standards) Rules, 2021Rule 2021
- G.S.R. 44(E)-Companies(Incorporation) Amendment Rules 2021Rule 2021
- CARO 2020 dated 25.02.2020Order 2020
- Companies (Incorp) 2nd Amdt Rules 2020Rule 2020
- Exemptions to Government Companies under section 462 of the CA 2013,notification dated 02.03.2020Notification 2020
- commencement notification dt 21.12.2020Notification 2020
- Notification of Special Courts in state of Uttarakhand and Union Territories of Jammu & Kashmir and LadakhNotification 2019
- special courts int the State of MH dt 28.08.2019Notification 2019
- Commencement Notification dated 09.02.2018Notification 2018
- Companies (Incorporation) 3rd Amendment Rules 2018Rule 2018
- Companies (Incorporation) 4th Amendment Rules,2018Rule 2018
- Notification dated 23.02.2018 regarding Exemption for segment reporting.Notification 2018
- Notification regarding amendments in the notification number S.O. 529(E)Notification 2018
- Exemption to Government Companies under section 462 of CA, 2013Notification 2017
- Exemption to Private Companies under section 462 of CA, 2013Notification 2017
- Exemption to Section 8 Companies under section 462 of CA, 2013Notification 2017
- Substitution of ICSI and ICAI nominee on NACASNotification 2017
- Companies (Auditor's Report) Order, 2016Order 2016
- Delegations of Powers to Regional Directors under section 458 of CA, 2013Notification 2016
- Notification for amendment in S.O.2425(E) dated 18.09.2014 - section 210A of Companies Act 1956.Notification 2015
- The Companies (Auditor’s Report) Order, 2015Order 2015
- Chapter II - The Companies (Incorporation) Rules, 2014Rule 2014
- Chapter IV - The Companies (Share Capital and Debentures) Rules, 2014Rule 2014
- Commencement Notification of the Companies Act, 2013Notification 2014
- Delegation of powers u-s 153 and 154 of CA 2013 to RD NoidaNotification 2014
- Delegation of powers under section 458 of CA 2013 to ROCsNotification 2014
- Delegation_of powers under section 458 of CA 2013 to RDsNotification 2014
- Notification relating to effective date of provisions of section 135 and Schedule VII of Companies Act, 2013Notification 2014
- The Companies (Share capital and Debentures) Amendment Rules, 2014Rule 2014
Another 8 instruments name this provision in its title or its text without being made under it.
- 1. G.S.R No. 36(E) Companies Registration of Foreign Companies Amendment Rules 2023 dated 20.01.2023Rule 2023
- G.S.R 298(E) Companies Removal of Names of Companies from the Register of Companies Amendment Rules 2023 dated 17.04.2023Rule 2023
- G.S.R 367(E) Companies ( Compromises Arrangements and Amalgamations) Amendment Rules 2023 dated 15.05.2023Rule 2023
- G.S.R 40(E) Companies (Accounts) Amendment Rules, 2023Rule 2023
- G.S.R 408(E) Companies accounts second amendment rules 2023 dated 31.05.2023Rule 2023
- G.S.R NO. 242(E) Companies Indian Accounting Standards Amendment Rules 2023 dated 31.03.2023Rule 2023
- G.S.R No. 37(E) Companies Prospectus and Allotment of Securities Amendment Rules 2023 dated 20.01.2023Rule 2023
- G.S.R No. 39(e) Companies Authorized to Register Amendment rules 2023 dated 19.01.2023Rule 2023
Questions about Section 3
What does Section 3 of the Companies Act deal with?
Section 3 of the Companies Act is headed "Formation of company". A company may be formed for any lawful purpose by-- (a) seven or more persons, where the company to be formed is to be a public company;
How do I find court cases under Section 3 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 3, section 3 Companies Act, section 3 of the Companies Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 3 of the Companies Act, and has it changed?
2 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 32: most recently SO 1242(E) Designation of Special Court in State of Jharkhand dated 15.03.2023 (2023), then G.S.R 643(E) companies Incorporation Third Amendment Rules 2022 dated 18.08.2022 (2022), and 30 more.
When did Section 3 of the Companies Act come into force?
Section 3 of the Companies Act, cited as Companies Act 3, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.