The Ministry of Corporate Affairs has clarified that the Companies Act, 2013, does not currently apply to the state of Sikkim. This is a result of a 2013 Rajya Sabha debate where the then Corporate Affairs Minister committed to consulting the Sikkim government before implementing the new law. Although the Companies Act, 2013 includes a provision to repeal the older Sikkim Registration of Companies Act, 1961, this has not been done. The Ministry has repeatedly sought consent from the Sikkim government to proceed, but a response has yet to be received. Contrary to the assumption that the 1961 Act has been diluted, the Ministry states that it remains in effect. The response also notes that despite the law not being applicable, two companies were improperly registered with addresses in Sikkim under the 2013 Act, and administrative action is being initiated against the officials involved.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
RAJYA SABHA
UNSTARRED QUESTION NO. 2943
ANSWERED ON TUESDAY, 19thAugust, 2025
“Application of the Companies Act, 2013 in Sikkim”
2943 # Shri Dorjee Tshering Lepcha :
Will the Minister of Corporate Affairs be pleased to state:
a. whether the Companies Act, 2013 is applicable in the State of Sikkim, if so, the details thereof and the number of companies registered after the implementation of Companies Act,2013, whether there is not a single company registered in the State, the details thereof;
b. whether the registration of company in Sikkim is required to be done under the existing Sikkim Registration of Companies Act, 1961 or whether it is compulsory to be registered as per Companies Act, 2013; and
c. the details thereof and the reasons for diluting the Sikkim Registration of Companies Act, 1961 protected by Article 371(F) of our Constitution?
ANSWER
Minister of State in the Ministry of Corporate Affairs; Minister of State in the Ministry of Road Transport and Highways
(Shri Harsh Malhotra)
(a) No Sir. However, two companies namely Trip of Lifetime Traveltrek Private Ltd and Pandim Online Solutions Private Ltd were incorporated with registered office address of State of Sikkim. Suitable administrative action is being initiated separately against the concerned officials.
(b)& (c) Section 465 of the Companies Act, 2013 deals with repeal and savings provisions of Companies Act 1956, and sub-section (1) and sub-section (3) of the Section 465 of the Companies Act, 2013 provide for the repeal of Registration of Companies (Sikkim) Act, 1961 but the same has not been repealed in view of assurance given on the floor of Rajya Sabha debate on 08/08/2013 by the then Hon’ble Corporate Affairs Minister that before implementation of Companies Act, 2013 in Sikkim, consultation would be made with the Government of Sikkim. The Ministry of Corporate Affairs has written several letters to the Sikkim Government to seek its consent, however, same is yet to be received. There has been no dilution of the Sikkim Registration of Companies Act, 1961.
