Prohibition of association or partnership of persons exceeding certain number
Section 464 of the Companies Act, 2013 deals with prohibition of association or partnership of persons exceeding certain number. No association or partnership consisting of more than such number of persons as may be prescribed shall be formed for the purpose of carrying on any business that has for its object the acquisition of gain by the association or partnership or by the individual members thereof, unless it is registere The Act came into force on 01 Apr 2014.
(1) No association or partnership consisting of more than such number of persons as may be prescribed shall be formed for the purpose of carrying on any business that has for its object the acquisition of gain by the association or partnership or by the individual members thereof, unless it is registered as a company under this Act or is formed under any other law for the time being in force:
Provided that the number of persons which may be prescribed under this sub-section shall not exceed one hundred.
(2) Nothing in sub-section (1) shall apply to--
(a) a Hindu undivided family carrying on any business; or
(b) an association or partnership, if it is formed by professionals who are governed by special Acts.
(3) Every member of an association or partnership carrying on business in contravention of subsection (1) shall be punishable with fine which may extend to one lakh rupees and shall also be personally liable for all liabilities incurred in such business.
Section 464, The Companies Act, 2013 (Act 18 of 2013).
Made under this section, and citing it
2 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.
Questions about Section 464
What does Section 464 of the Companies Act deal with?
Section 464 of the Companies Act is headed "Prohibition of association or partnership of persons exceeding certain number". No association or partnership consisting of more than such number of persons as may be prescribed shall be formed for the purpose of carrying on any business that has for its object the acquisition of gain by the association or partnership or by the individual members thereof, unless it is registere
How do I find court cases under Section 464 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 464, section 464 Companies Act, section 464 of the Companies Act. People searching for it also type companies ordinance 464. 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 464 of the Companies Act, and has it changed?
The rules and notifications made under it are where it actually bites, and there are 2: most recently G.S.R. NO. 46(E) companies Miscellaneous rules 2023 dated 20.01.2023 (2023), then Chapter XXIX - The Companies (Miscellaneous) Rules, 2014 and Companies (Adjudication of Penalties) Rules, 2014. (2014).
When did Section 464 of the Companies Act come into force?
Section 464 of the Companies Act, cited as Companies Act 464, 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.