What is Incorporation of a Company
An incorporation of a company is its compulsory requirement for its existence. Promoter is usually the person who undertakes all the necessary steps for the incorporation. Incorporation can be defined as the process by which the company gets a separate legal entity. Now let us discuss the number of steps which are required to be fulfilled for the incorporation of the company. Following are the steps which explain all the steps briefly:-
Firstly for the incorporation process there is needed to fulfill the requirement of section 12. As per section 12 there is need of association of persons. The section defines the statutory limit of persons to be associated in case of both private and public company. Two persons are required in the case of private company while at least 7 persons are required in the case of public company. It should be noted that all the members of company are associated for the purpose of a common objective either it can be for profit motive or providing services. It is require that the purpose or objective should be lawful in nature. A company with an illegal objection cannot get itself registered. Moreover the section 12 also requires that the minimum numbers should also subscribe in the memorandum and articles of the company. After complying with the requirement of sec 12 the company needs to get a name which gives it a separate identity. It is to be noted the name of the company should not be similar to the name of any famous personality, national symbol and with any other company. To get a name the company has to make an application with the registrar. The registrar within reasonable time would inform whether the proposed name is available or not. After getting a name there is need to submit a number of documents with the registrar. Memorandum of association, article of association, statutory declaration which shows that all the requirements of incorporation are fulfilled and if there is any whole time director the agreement of him with the company all these documents are needed to be submit with the registrar. Moreover sometimes other documents which are optional also need to submit i.e. documents regarding address of registered office of the company and particulars of directors, manager and secretary.
If the registrar is satisfy that all the requirements needed are fulfilled then he issues the certificate of incorporation to the company which authorized it to be registered under the company act.