Company Registration

Any business is prone to incur a loss and one of the main advantages of registration is that it offers limited liability protection and hence the business promoters are not liable for the liabilities of the business. There is no way of losing personal property.

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Company Registration

A company must report changes to the registered office, appointment or resignation of Directors, changes to Auditor, and more to the Ministry of Corporate Affairs through relevant forms and documents. Such filings required to maintain compliance for a company is termed company filings.

Benefits of Company Registration

Any business is prone to incur a loss and one of the main advantages of registration is that it offers limited liability protection and hence the business promoters are not liable for the liabilities of the business. There is no way of losing personal property.
Other Benefits:-
  • Helps to generate capital.
  • Separate entity.
  • Limited liability.
  • Transferability of shares.
  • The double E's – Expertise and Efficiency.
  • Incorporation means no personal liability.
  • Insurmountable paperwork for compliance.
  • Companies are taxed at a higher rate.

Steps involved Incorporation of a company:-

The following steps are involved in the incorporation of a company.

  • Ascertaining Availability of Name.
  • Preparation of Memorandum of Association and Articles of Association.
  • Printing, Signing and Stamping, Vetting of Memorandum and Articles.
  • Power of Attorney.
  • Other Documents to be Filed with the Registrar of Companies

Four major steps to register a company/ startup in India:

  • Step 1: Acquire Digital Signature Certificate (DSC)
  • Step 2: Acquire Director Identification Number (DIN)
  • Step 3: Create an account on MCA portal- New user registration @ mca.gov.in.
  • Step 4: Incorporate or Apply for the company to be registered.

FAQs

● What is the Incorporation and what are the different stages of incorporation?
Incorporation or registration is the second stage in the formation of a company. It is the registration that brings a company into existence. A company is properly constituted only when it is duly registered under the Act and a Certificate of Incorporation has been obtained from the Registrar of Companies.
● What are the documents required for the Incorporation of the company?
Documents Required For Incorporation:-
  • Memorandum of Association.
  • Articles of Association.
  • Prospectus Statement in lieu of prospectus is not requires in case of a private company
  • Copy of import agreements.
  • Statutory declaration in Form I.
  • Copy of Letter of Register indicating approval of name.
  • Power of Attorney..
● What are the 4 stages of the formation of a company?
Formation of a company involves various stages which are as follows:
  • Promotion stage.
  • Incorporation stage.
  • Capital subscription stage.
  • Commencement of business stage.
● What are the corporate documents?
Corporate Documents means the Certificate of Incorporation, Memorandum of Association, Articles of Association, Bylaws and any other corporate document of an entity, including any shareholders, voting and/or any other agreement or document relating to the incorporation, ownership or management of an entity.
● What is the difference between MOA and AOA?
'Memorandum of Association' abbreviated as MOA, is the root document of the company, which contains all the basic details about the company. On the other hand, 'Articles of Association' shortly known as AOA, is a document containing all the rules and regulations designed by the company.
● Which documents are subsidiary of the MOA?
MOA is the prime document of the company. It is also called the charter of the company. AOA is the subsidiary document of the Company.
● How do I draft MOA and AOA?
A Memorandum of Association generally has the following clauses: a. Name Clause: This clause contains full of the Company with which it is incorporated. b. Registered Office Clause/Domicile Clause: This clause indicates the jurisdiction of the Corporate Regulator, under which the Company's registered office falls.
● Who prepares the draft of the memorandum and Articles of Association?
Promoter prepares draft Memorandum and Articles of Association.