Sec 366 of Companies Act, 2013: Entities capable of being registered under Companies act
Updated: Oct 4, 2022
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Chapter XXI of the 2013 Companies Act, which addresses companies authorised to register under this act and establishes the provisions for companies capable of being registered, contains Section 366. The process and conditions for registering a company, as broadly defined in this section, under this part are laid out in this section and the corresponding rules. Any partnership firm, limited liability partnership (LLP), cooperative society, society, or other legal business entity may register as a company under this section.
According to Section 366:
This section lists the types of businesses that may register under Part XXI. The term "company" as used in this Part refers to any partnership firm, limited liability partnership (LLP), cooperative society, society, or other business entity created in accordance with any other currently in effect legal provision that submits an application for registration under this Part.
Any legally formed, two or more member company that is operating under an Act of Parliament may register under this section at any time as an unlimited company, a company limited by shares, or a company limited by guarantee in the manner specified by Rule 3 of the Companies (Authorised to Register) Rules, 2014, and the registration shall not be invalidated by the mere fact that it was done with the intention of the company becoming a limited liability company.
Suppose, X is a cooperative society registered under Cooperative Societies Act, 1912, from the last 20 years. The members in an annual general meeting give written consent for the conversion of X cooperative society to be registered under Sec 366 of Companies Act, 2013. Here, after following all the due procedures and fulfilment of conditions; X will be registered as a company.
This section must be read in conjunction with the Companies (Authorised to Registered) Rules, 2014, which also lays out some procedural guidelines that every company must abide by. The steps that must be taken in order to register a company, the forms that must be filled out, and the documents that must be delivered to the registrar are outlined.