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Sikkim's Corporate Mystery: Why the Companies Act 2013 "Does Not Arise"

The Centre has made a significant clarification about corporate law in Sikkim. Minister of State Harsh Malhotra stated that the national Companies Act of 2013 simply does not apply there. This response came after an MP from Sikkim raised practical concerns about business registration and compliance. The announcement underscores Sikkim's unique constitutional and legal position within India.

Key Points: Companies Act 2013 Not Applicable in Sikkim Says Centre

  • Centre reaffirms Sikkim's distinct legal framework for corporate governance and compliance
  • MP Lepcha raised issues over company registration and MCA21 portal access in Sikkim
  • Questions about establishing a dedicated facilitation centre for Sikkim's businesses were dismissed
  • The clarification came amid parliamentary din over other bills like the Manipur GST amendment
2 min read

Companies Act 2013 not applicable in Sikkim, says Centre

Centre clarifies Sikkim's unique legal status, stating the Companies Act 2013 does not apply, raising questions for businesses and compliance in the state.

"since the Companies Act, 2013, is 'not applicable' in the State of Sikkim, any questions raised by the MP 'does not arise'. - MoS Harsh Malhotra"

New Delhi, December 3

Minister of State for Corporate Affairs Harsh Malhotra clarified that the Companies Act, 2013, does not apply to Sikkim, reaffirming the state's distinct legal status in corporate matters.

According to Ministry of Corporate Affairs, MoS Malhotra was responding to an unstarred question put up by Rajya Sabha Member of Parliament from Sikkim, D T Lepcha, who had questioned the Ministry over the reported difficulties being faced by Sikkim stakeholders over registration of companies, filing of statutory returns and compliance procedures under MCA21 portal due to connectivity issues and lack of facilitation centres in the State.

MP Lepcha had also questioned the Ministry on the existence of any proposals submitted by the Centre to establish a dedicated MCA facilitation centre in Sikkim to assist start-ups, MSMEs, and corporate entities operating within the State, and on plans to provide special exemptions or other related support to strengthen such entities.

MoS Malhotra responded that, since the Companies Act, 2013, is "not applicable" in the State of Sikkim, any questions raised by the MP "does not arise".

Earlier, the Rajya Sabha returned the Manipur Goods and Services Tax (2nd Amendment) Bill, 2025, to the Lok Sabha after a brief discussion.

Following the bill's return, the 2nd amendment was passed by the Lok Sabha on Monday, the first day of the Winter session of Parliament, amid din over the opposition parties' demand for discussion on Special Intensive Revision of electoral rolls.

As the bill was taken up, opposition members staged a walkout from the Rajya Sabha over their demand for immediate discussion on SIR.

Replying to the debate, Union Finance Minister Nirmala Sitharaman said the government is committed to ease of doing business and avoiding unnecessary disputes.

Minister of State for Finance Pankaj Chaudhary had moved The Manipur Goods and Services Tax (2nd Amendment) Bill, 2025, in the Rajya Sabha for consideration in the House and return to the Lok Sabha.

- ANI

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Reader Comments

P
Priya S
Respecting Sikkim's special status under Article 371F is important for our federal structure. But the government should proactively help them integrate with national portals like MCA21 if that's what local businesses want. Ease of doing business should be for all states! 👍
R
Rohit P
Typical bureaucratic answer. "Question does not arise" is not a solution for the stakeholders facing real problems. If the Act doesn't apply, what is the alternative mechanism? The MP asked a valid question about facilitation centres.
A
Anjali F
As someone from the Northeast, I appreciate that Sikkim's unique history is recognized. But this creates a two-tier system. How can we talk about "One Nation, One Market" with such different laws? It might discourage investment if compliance is unclear.
M
Michael C
Working with a company that has operations in Sikkim. The lack of a central MCA portal creates extra paperwork and delays. The minister's clarification is factual, but a practical bridge is needed for businesses operating across state lines.
S
Suresh O
The government should table a white paper or a simple guide explaining the corporate laws for Sikkim. This will help entrepreneurs. "Question does not arise" is not an acceptable reply to an elected representative seeking help for his constituents.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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