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CS Executive · Company Law and Practice · Introduction to Company Law

Ranjit, Meera and Suresh run an unregistered business called Shree Traders, a partnership firm, and wish to register it under the Companies Act, 2013 as a company limited by shares. Under the Part dealing with registration of existing entities, how is the word 'company' treated for this purpose?

For the registration Part, the word company includes a partnership firm, LLP, cooperative society, society or any other business entity formed under another law that applies for registration under this Act. So Shree Traders, a partnership firm, is eligible to apply.

  1. AIt includes any partnership firm, limited liability partnership, cooperative society, society or other business entity formed under any other law that applies for registrationCorrect
  2. BIt is limited to bodies already formed under the Companies Act, 1956
  3. CIt excludes partnership firms but includes cooperative societies
  4. DIt includes only foreign bodies corporate with a place of business in India

Explanation

Section 366(1) states that for the purposes of that Part, 'company' includes any partnership firm, LLP, cooperative society, society or any other business entity formed under any other law which applies for registration. Hence a partnership firm is covered. Excluding firms is therefore wrong.

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