04 February 2016
Dear All, Kindly go through the point (ii) in the definition of "Body Corporate" as mentioned in the Companies Act, 2013 below: “body corporate” or “corporation” includes a company incorporated outside India, but does not include— (i) a co-operative society registered under any law relating to co-operative societies; and (ii) any other body corporate (not being a company as defined in this Act), which the Central Government may, by notification, specify in this behalf;
If we interpret it, it states that body corporate does not include other business entities, which are not registered as company under companies act, which the government specifically excludes. This means that other business entities, other than companies, are also included in the definition of body corporate apart from those which are specifically excluded by the government because if it would have been that body corporate means only companies registered under companies act then there would not have been any scope of clause (ii) in the definition that only government specified other business entities are "excluded" from the purview of "body corporate"
This interpretation is important to confirm whether partnership firms are included under body corporate or not?
05 February 2016
LLPs are registered under Companies Act 2013 and hence are deemed to be bodies corporate. However, a non LLP firm will not come under the definition of body corporate since it is not an incorporated body nor is it registered under any provisions of the Companies Act (1913 / 1956 / 2013). Therefore ordinary firms formed / registered under Indian Partnership Act 1932 ARE NOT BODIES CORPORATE.
CAclubindia
