There are several definitions of a company but the most appropriate one is by justice Marshall, he states that “A company is a person, artificial, invisible, intangible and existing only in the eyes of the law”. In other words – A company is an artificial person created by law. There are some very important features,…
This is a detailed guide for how to register and company in India or company registration process in India. There are four main stages in the formation of a company. First is promotion stage, then comes incorporation or registration stage, capital subscription stage and the last stage is business commencement stage. All the above mentioned stages are very important, but the most important stage is, its Incorporation or Registration Stage. This stage provides the company with its name and members, among other many important things. Incorporation stage involves the following steps :-
Availability and approval of Name –
The first step of promoters is to check up with the registrar of the Companies about the availability of the proposed name of the company. The name of a company is very important thing, as this will be the name by which people will refer to the company. So, the name of the company should always be small, simple and catchy. The name of the company should not be similar to the name of other existing company.
Submission of Documents –
After the completion of the first step, the promoters of the company needs to submit the following documents with the Registrar of the Companies:-
- Memorandum of Association – It is the charter or the constitution of the company. It contains the objects and powers of the company, along with the scope of operations of the company beyond which it cannot go. It contains seven clauses, they are – The name clause, the registered office clause, the objects clause, liability clause, the capital clause, the association or subscription clause.
- Articles of Association – The articles of association of a company contain the rules relating to the management of its internal affairs.
- A list of directors- Containing their full names, address, occupation and age.
- Consent letters or consent of the directors to act as directors.
- Notice of the address of the registered office, and
- A statutory declaration that all the requirements of the law for registration have been duly complied with.
Payment of Registration Fees –
The promoters need to deposit necessary stamp duty and registration fee with the registrar of the company, along with the above documents for the registration of the company. The amount of registration fee will vary with the amount of authorized capital of the company.
Registration and Certificate of Incorporation –
After filing the above documents and deposition of necessary fees, the Registrar of the Companies, if satisfied that all the legal formalities have been fulfilled , will register the company and , issue a Certificate of Incorporation under his seal. The certificate of Incorporation brings the company into the world and defines its existence as legal person. The Certificate of Incorporation is like birth certificate of the company. It is conclusive proof that the company has been duly registered after completing all the necessary steps defined in the Company law of India. A private company can start its business immediately after completion of incorporation stage. But, a government company having share capital can only start its business after completion of two more stages; capital subscription stage and commencement of business stage.