Key Acts and Regulations Governing Entrepreneurship in India — Flashcards

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The Companies Act, 2013 is the principal law for companies in India. It regulates incorporation, administration, management, and winding up of companies.

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It gives companies legal identity, structure, and credibility. It also helps protect shareholders, creditors, employees, and the public by making company operations lawful and accountable.

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A registered company becomes legally distinct from its owners. It can own property, enter contracts, borrow money, sue others, and be sued in its own name.

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Shareholders are not personally responsible for the company’s debts beyond the amount they have invested. This limited liability encourages people to invest in businesses.

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CSR means Corporate Social Responsibility. Certain companies meeting prescribed financial thresholds must spend a portion of profits on social welfare activities such as education, healthcare, environ…

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The MSMED Act, 2006 is the law that promotes, develops, and strengthens micro, small, and medium enterprises. It supports their growth, protection, and access to benefits.

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MSMEs are classified using two criteria: investment in plant, machinery, or equipment, and annual turnover. Both are used to decide the category and eligibility for support.

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It decides eligibility for government benefits, subsidies, and support schemes. This helps smaller businesses get targeted assistance and improve stability.