The incorporation of a company refers to the legal process that is used to form a corporate entity or a company. An incorporated company is a separate legal entity on its own, recognized by the law. These corporations can be identified with terms like ‘Inc’ or ‘Limited’ in their names. It becomes a corporate legal entity completely separate from its owners.
Meaning of a Company
According to the Companies Act, 2013, defines the term ‘Company’ as follows: “Company means company incorporated under this Act or under any previous company law.”
What is Company’s incorporation?
Company’s Incorporation means making a Company a legal person; making its own identity.
Basically Incorporation means giving birth to a Company.
Types of Company Registration
Company registration is the primary process by which business owners establish or incorporate their company. In India, the Companies Act, 2013 provides 7 different structures to set up a business:
- Public Limited Company
- Private Limited Company
- Limited Liability Partnership
- Sole proprietorship
- One person company
- Section 8 company
Steps for incorporation of a company
1. Application for approval of name of company:
The first step in getting a company incorporated is of obtaining the approval of name from Registrar of Companies. A company which is not prohibited and which is not identical with or does not closely resemble the name of a company already registered.
2. Establish the initial registered office address:
The registered office is where you must keep your corporate records and where official documents will be served on the corporation. Choose an address where you will be sure to receive any documents sent there since, legally, they will be assumed to have been received by the corporation.
3. Preparation of Memorandum of association:
The preparation of Memorandum of Association (MOA) is the next step in the incorporation of a company. It is the constitution of the company, which describes its objects and scope and the relation with outside world. The memorandum should also be properly stamped.
4. Preparation of Article of association:
Besides memorandum, the promoters will also prepare Articles of Association (AOA). It is a document which contains rules and regulations relating to the internal management of the company. A public limited company file its own Articles of Association, it may adopt model clauses prescribed in Table A, Schedule 1 of the Act. A private limited company is also required to submit its articles duly signed by the signatories.
5. Preparation of other required documents:
Besides the above documents, promoters also prepare the following documents at the time of incorporation of the company.
- Comprehensive help regarding PAN, TAN, DIN, and the DigitalSignatures.
- The consent of the directors (e-Form No.32), and filed with the registrar of the company.
- Promoter should execute the Power of Attorney. Person who has power of attorney, he/ she has the authority to make changes in the memorandum and other documents that have been filed with the registrar.
- The company should have a registered office and its information is filed with the Registrar within 30 days of its registration or from the date of commencement of business (e-Form No.18).
- A statutory declaration in (e-Form No.1), thatall legal requirements for registration have been followed with the Registrar at the time of registration. The statutory declaration must be signed by an advocate of the Supreme Court or High Court or an attorney or pleader of High Court or a practicing Chartered Accountant.
6. Payment of fees:
At the time of registration, prescribed registration fees and filing fee for each document filed for registration are to be paid at the Registrar’s office.
7. Incorporation Certificate:
When all the required documents are filed with the Registrar along with the requisite fees, a scrutiny is made. When all documents are found in order, the Registrar will enter the name of the company in the Register of Companies and issues a Certificate of Incorporation. The date mentioned in the certificate is the date of incorporation of the company.
According to Companies Act, the certificate is conclusive evidencethat all the requirements of the Act in regard to the formation and registration of the company have been complied with. If you need assistance or expert advice, please contact companysuggestion.com. We have a group of legal professionals and experts who may help you.