Section 3 of the Companies Act, 2013
Section 3 of the Companies Act, 2013 defines what constitutes a company and how it may be formed.
📘 Section 3 – Formation of Company
(1) A company may be formed for any lawful purpose by—
(a) Seven or more persons, in case of a public company;
(b) Two or more persons, in case of a private company; or
(c) One person, in case of a One Person Company (OPC),
by subscribing their names to a memorandum of association and complying with the requirements of this Act in respect of registration.
(2) A company so formed may be—
(a) a company limited by shares; or
(b) a company limited by guarantee; or
(c) an unlimited company.
(3) A company formed under this Act shall be a body corporate—
From the date mentioned in the certificate of incorporation.
It shall have perpetual succession and a common seal, if applicable.
It shall be capable of:
suing and being sued,
acquiring, owning, and transferring property,
entering into contracts, and
doing all acts that a natural person can do (subject to law).
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