In an earlier time, one had to do lots of struggle to register a company. There were so many paper works that had to be taken care of. They had to do
In an earlier time, one had to do lots of struggle to register a company. There were so many paper works that had to be taken care of. They had to do frequent rounds before finalizing all the works. Thankfully, the process has been simplified now and the Company Incorporation in India has become quite easy. With the introduction of advancement in technology, the documentation process has transformed online and it helps the people to complete in fewer steps.
To start the function of a new venture, every company has to register under the Ministry of Corporate Affairs (MCA) to get the certificate following the official guidelines. Depending on the nature of the business, there are several types of certificates available. If all of your documents are authentic and in place then it is a matter of a few days to get the certificate in the new format.
What is a certificate of incorporation?
The Certificate of Incorporation is an important legal document that every entrepreneur needs in time for the formation of the company. It is like a license to form the company that will be issued by the state government. In India, the private limited company is considered by the shares for that the shareholders are legally responsible to limit creditors.
When a company is privately limited, it cannot trade its share on the public stock exchange. It is the main difference between the private limited and public limited company. For that reason, the private limited company has to use suffixes like ltd (Limited) or inc (Incorporation) after their names.
What are the steps that the private limited company needs to follow in a time of formation?
For the Company Incorporation in India, there are certain steps to execute the application and formation process without any hassles.
- You have to file application for DIN (Director Identification Number) and DSC (Digital Signature Certificate).
- Then you have to select and check the name of the company and finally apply for it after assuring availability.
- You need to draft the MOA (Memorandum of Association) and AOA (Article of Association).
- After all these steps, you have to fill up the e-forms along with the Registrar of Companies.
- You need to pay for the fees for the Registrar of Companies and stamp duty to complete your part of the action.
- The Registrar of Companies will vary all the submitted documents and forms to check for any disparity.
- After their complete satisfaction, the organization will register the Certificate of Incorporation to the director of the company.
Why the Certificate of Incorporation is important for any company?
It is the legal document that verifies the validity of the company. For that reason, it is important for the existence of the organization.
There are five things that will be included in the Certificate:
- Corporation’s name along with the abbreviation
- Business purpose statement
- Registered office address of the corporation along with the name of the registered agent
- Number of shares of stock along with a description
- Corporation’s name and address