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A company comes into existence once it has been correctly incorporated under the provisions of the Companies Act 2013 or any earlier Companies Act that may apply. This initial step of incorporation is crucial for any company before it can engage in business transactions. During the incorporation process, several fundamental decisions need to be made, including whether the company will be classified as a private or public company, defining the company's objectives, determining the initial capital investment, and addressing various other important matters.
Section 7 of the Companies Act 2013 outlines the essential documentation required for the incorporation of a company. These documents need to be submitted to the Registrar of Companies, who will then conduct an inquiry to ensure that all the necessary paperwork has been correctly filed. Upon the registrar's satisfaction with the compliance of these requirements, they proceed to retain and register the company's memorandum of association, along with other pertinent documents. Subsequently, the Registrar of Companies issues a Certificate of Incorporation, which serves as the company's official "birth certificate." In addition to this certificate, the Registrar also assigns a corporate identity number, which bestows upon the company the status of a distinct legal entity.
In essence, the process of incorporation under Section 7 of the Companies Act 2013 honors the official birth of a company, with the Certificate of Incorporation serving as its legal acknowledgment of existence.
Registration involves the formal recognition of a business entity by the relevant government authorities. It provides the business with a unique identity and legal standing. The term "incorporation," on the other hand, specifically refers to the creation of a corporation, which is a distinct legal entity separate from its owners.
A. Documents for Identity Verification
B. Documents for Address Verification
C. Passport-sized Photographs (3 copies each)
Note: It is essential that all the aforementioned documents are self-attested by the relevant stakeholders. Additionally, it is recommended to submit the most up-to-date documents and ensure that the telephone bill is current, while the electricity bill should not be older than 2 months.
The first step in this journey is selecting the appropriate business structure. Common choices include sole proprietorships, Limited Liability Partnership (LLPs), Private Limited Company, One Person Company (OPC), and Public Limited Company. Each structure has its own set of advantages and disadvantages, so careful consideration is paramount.
The selection of a business name is pivotal. It must be unique and not infringe on existing trademarks. Once a suitable name is chosen, it needs to be registered with the relevant authorities.
The Director Identification Number (DIN) stands as a pivotal document requisite for submission to the authorities. It serves as a unique identifier for individuals aspiring to assume the role of a company's director. Acquisition of a DIN is mandatory for those seeking directorship within a company's framework.
As the process of registering a company is conducted online, it is imperative that the company's stakeholders possess digital signatures to affix on the numerous forms required for submission through the MCA portal.
To initiate the company registration process, it is imperative to submit the SPICe+ form along with the requisite documents through the MCA portal. To facilitate this process seamlessly, the company's director must first register on the MCA portal and subsequently gain access to a range of electronic services, including form submission and access to public documents.
Last but certainly not least, once the documents are submitted, the Registrar of Companies examines the application. If it is successful, the Registrar issues a Certificate of Incorporation of the Company.
Every company incorporated with a share capital is obligated to fulfill specific conditions before commencing business or exercising borrowing powers:
The process of incorporating a company is facilitated through the SPICe+ form, which can be submitted online via the MCA website. Once submitted, the ROC will review the form and accompanying documents, subsequently issuing the Certificate of Registration upon successful examination.
Due to recent regulatory reforms and updates in the company registration process in India, the duration required for registering a company has significantly diminished. Provided that the applicants have all the requisite documentation prepared and in order, the typical timeframe for authorities to scrutinize the documents and formalize the company's registration now stands at a mere 10 to 15 days.
In accordance with Section 10 of the Companies Act 2013, the registration of the Memorandum and Articles of Association legally binds the company and its members in the same manner as if they personally endorsed these documents themselves.
