2.Incorporation -various-steps followed.pptx

Incorporation-Steps followed for Incorporation

1. Incorporation Dr.S.Jayanthi Sobhana Asst.Professor,Dept of Commerce PA Sri Ramakrishna college of Arts &Science

2. Incorporation of Company A company comes into existence is generally by a process referred to as incorporation. Once a company has been legally incorporated, it becomes a distinct entity from those who invest their capital and labour to run the company

3. Usually the first step to form a company is the process known as ‘promotion’ where a person persuades others to contribute capital to a proposed company before it is incorporated . Such a person is called the promoter of the company.

4. Mode of Forming incorporated company (Sec 3) Any 7 or more persons ( 2 or more in case of private) associated for any lawful purpose may form an incorporated company , with or without limited liability. They shall subscribe their names to a Memorandum of Association and also comply with other formalities in respect of registration. A company so formed may be: Company limited by shares Company limited by guarantee An unlimited company.

5. Incorporation of Company (section 7) Section 7 of the Companies Act, 2013, deals with the incorporation of a company. It outlines the process and documents required for registering a company with the Registrar of Companies.  This section specifies that the memorandum and articles of association, along with a declaration from a professional and the first directors, must be filed with the Registrar. 

6. There shall be filed with the Registrar within whose jurisdiction the registered office of a company is proposed to be situated, the following documents and information for registration, namely: (a)the memorandum and articles of the company duly signed by all the subscribers to the memorandum in such manner as may be prescribed

7. Contents of Certificate of Incorporation The Certificate of Incorporation of a private limited company includes the following: The name of the company and its abbreviated form. A statement specifying the business purpose. The registered office address and the name of the registered agent for the address. The number of shares that are authorised to be issued and the description of the different types of stock that can be issued if there is more than one type.