Section 1(4) of the Companies Act, 2013: Applicability Explained

Section 1(4) identifies the companies and other bodies to which the Companies Act, 2013 applies. The provision is important because certain regulated businesses are governed both by the Companies Act and by sector-specific legislation.

In brief: The Companies Act, 2013 applies generally to companies incorporated under the Act or under previous company law. It also applies to specified regulated companies and certain bodies corporate, but sector-specific or special legislation prevails to the extent of an inconsistency expressly contemplated by Section 1(4).

What does Section 1(4) cover?

Under Section 1(4), the Act applies to the following categories:

  1. Companies incorporated under the Companies Act, 2013 or previous company law. This is the principal category and covers companies formed under the present Act as well as companies incorporated under earlier company legislation.
  2. Insurance companies. The Companies Act applies except to the extent that its provisions are inconsistent with the Insurance Act, 1938 or the Insurance Regulatory and Development Authority Act, 1999.
  3. Banking companies. The Act applies except to the extent that its provisions are inconsistent with the Banking Regulation Act, 1949.
  4. Companies engaged in generation or supply of electricity. The Act applies except to the extent that its provisions are inconsistent with the Electricity Act, 2003.
  5. Companies governed by a special Act. Where another special enactment governs a company, the Companies Act applies except to the extent of inconsistency with that special enactment.
  6. Certain statutory bodies corporate. A body corporate incorporated by an Act may be brought within the provision by Central Government notification, subject to the exceptions, modifications or adaptations stated in that notification.

Meaning and legal effect of the inconsistency rule

Clauses (b) to (e) recognise that some companies operate under specialised regulatory statutes. The Companies Act therefore remains applicable, but where a provision covered by Section 1(4) is inconsistent with the relevant sector-specific or special Act, the special statutory regime governs to the extent of that inconsistency. The issue should be examined provision by provision rather than by assuming that the Companies Act is wholly excluded.

Important definitions connected with Section 1(4)

Banking company

Section 2(9) of the Companies Act, 2013 refers to the meaning assigned to a banking company in Section 5(c) of the Banking Regulation Act, 1949.

Body corporate

Section 2(11) defines "body corporate" or "corporation" inclusively and also specifies exclusions. This definition is relevant when considering bodies that may be notified under Section 1(4)(f).

Company

Section 2(20) defines a "company" as a company incorporated under the Companies Act, 2013 or under any previous company law.

Practical application of Section 1(4)

For an ordinary company incorporated under company law, the Companies Act, 2013 is the primary corporate statute. For an insurer, banking company, electricity company or company governed by a special Act, compliance should also be checked against the relevant sectoral enactment. If both statutes address the same subject differently, the inconsistency qualification in Section 1(4) becomes material.

Official legal resources

For the current statutory text and amendments, refer to the official Companies Act, 2013 on India Code. Related official legislation includes the Insurance Act, 1938 and the Insurance Regulatory and Development Authority Act, 1999.

Updated: 16 September 2026. This article is a general explanation of Section 1(4); the current statutory text and applicable notifications should be checked for a specific legal issue.