Intellectual Property Rights: Practice and Drafting by Adv Gautam Matani. Register Now!
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Avika Kapoor (General Manager-Business Development)     11 July 2009

Meaning of Principal Business

What is the meaning of "Principal Business" of a Company in terms of Companies Act, 1956.

Kindly provide a reference from where the meaning can be derived or the term has been defined. 


 2 Replies

A V Vishal (Advocate)     11 July 2009

Dear Kapoor

The term Principal business is not defined in law, according to context since the matter pertains to Companies Act, it is construed as the main objects of the company which is declared in the MOA while registering the company.


 I dont know whether meaning available elsewhere but to reply......

See, Principal Business is the busienss for which a company is formed. There might b other businesses which would b necessary for carrying on the principal business. 

For Ex: A Construction Company having as its main business the construction related works can also carry out some other businesses which would help it carry out the principal business of Construction.

I know this is confusing but might b little useful to u and hence this reply.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Threads