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Sec 464 Companies Act 2013: Prohibition of association or partnership of persons exceeding certain number

SECTION-464 (Prohibition of association or partnership of persons exceeding certain number) under CHAPTER-XXIX (Miscellaneous) of the Companies Act, 2013

(1) No association or partnership consisting of more than such number of persons as may be prescribed shall be formed for the purpose of carrying on any business that has for its object the acquisition of gain by the association or partnership or by the individual members thereof, unless it is registered as a company under this Act or is formed under any other law for the time being in force:
Provided that the number of persons which may be prescribed under this sub-section shall not exceed one hundred.

(2) Nothing in sub-section (1) shall apply to—
  (a) a Hindu undivided family carrying on any business; or
  (b) an association or partnership, if it is formed by professionals who are governed by special Acts.

(3) Every member of an association or partnership carrying on business in contravention of sub-section (1) shall be punishable with fine which may extend to one lakh rupees and shall also be personally liable for all liabilities incurred in such business.

Extra Notes for Readers

(1) The Companies Act, 2013 received the assent of the President on the 29th August, 2013 (Published in the Gazette of India, Extraordinary, Part II - Section 1 by Ministry of Law and Justice, Legislative Department on 30th August, 2013).

(2) Section 464 of the Companies Act 2013 was notified by MCA Notification S.O. 902(E) dated 26th March 2014 (w.e.f. 1st April 2014).

(3) Relevant rule(s) of the Companies (Miscellaneous) Rules, 2014, which was notified by MCA vide notification G.S.R. 253 (E) dated 31st March, 2014  (w.e.f. 1st April, 2014)
  • Rule 10 - Association or partnership of persons exceeding certain number
Note: Please check MCA site for any further amendments to the Companies (Miscellaneous) Rules, 2014.

This page was last updated on 6th June, 2017.

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