Mode of forming Incorporated Company:
Any 7 or more persons (2 or more in case of a private company) associates for any lawful purpose may form an incorporated company with or without limited liability.
A company so formed may be:
A company limited by shares, or
A company limited by guarantee, or
An unlimited company
Documents to be filed with the Registrar:
Before a company is registered it is desirable to ascertain from the registrar of companies if the proposed name of the company is approved.
The following documents duly stamped together with the necessary fees are to be filled with the registrar:
The memorandum of association duly signed by the subscribers
The articles of association
Signed by the subscribers to the memorandum of association
The agreement, if any, which the company proposes to, enter into with any individual for appointment as its managing or whole-time director or manager
A list of the directors who have agreed to become the first directors of the company
A declaration stating that all the requirements of the companies act and other formalities relating to registration have been complied with. Such declaration shall be signed by any of the following persons:
An Advocate of the Supreme Court or of a High Court: or
An attorney or a pleader entitled to appear before a high court;
A secretary or a chartered accountant in whole-time practice in India, who is engaged in the formation of the company; or
A person named in the articles as a director, manager, a secretary of the company then within 30days of the date of registrar who shall record the same.
Effects of registration:
Three important consequences of registration:
The company becomes a distinct legal entity. Its life commences from the date mentioned in the certificate of incorporation.
The company acquires a perpetual succession. The members may come and go. But it goes on for ever, unless it is wound up.
The company’s property is not the property of the shareholders. The shareholders have a right to share in the profits of the company when realised and divided.
We already have discussed about kinds of companies in corporate world in the continuation of registration and incorporation of company in the business world.
0 Responses to “Registration and Incorporation of Company in Business World”