Incorporation of company under Company Act 2013
Incorporation of a Company Under the Companies Act 2013
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Incorporation of company under Company Act 2013
Incorporation of a Company Under the Companies Act 2013
Introduction:
Incorporation of a company is an important step for any business, which gives it legal identity and protection. In India, company is incorporated underthe Companies Act 2013 . The objective of this Actis to provide an orderly framework for the formation, operation and regulation of companies. Here wewill understand in detailthe process and requirements of company incorporationunderthe Companies Act 2013
Types of Company :
Various types of companies can be incorporated under the Companies Act 2013 , such as:
1. Private Company: It can have maximum 200 members.
2. Public Company : It has at least 7 members and there is no limit on the number of members.
3. Single Member Company (OPC): It has only one member.
4. Non-Profit Company (Section 8 Company): Its objective is not to earn profit but to serve society.
Process of Incorporation:
The process of company incorporation under the Companies Act 2013 can be divided into the following stages:
1. Name Reservation:
Selecting and reserving a company name is the first step. This process is completed in the following steps:
- RUN (Reserve Unique Name) Form: Reservation of the company name has to be done by filling the RUN form on the MCA portal. Two possible names can be selected in this.
- Name availability: The availability of the names selected is checked by the MCA and one of them is approved.
2. Digital Signature Certificate (DSC) and Director Identification Number (DIN):
- DSC: All directors are required to obtain a Digital Signature Certificate. This can be obtained from certified agencies.
- DIN: All proposed directors are required to obtain a Director Identification Number. For this DIR-3 form has to be filled.
3. Application for Company Incorporation:
- SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) Form**: One has to apply for incorporation by filling the SPICe+ form on the MCA portal. This includes the type of company, information about directors, registered office address, etc.
- Required Documents: Necessary documents also have to be uploaded along with the SPICe+ form, such as identity and address proof of directors, address of the registered office of the company, etc.
4. Company Constituent Documents (MOA and AOA):
- Memorandum of Association (MOA): This details the objectives and activities of the company.
- Articles of Association (AOA): These contain the rules and regulations for the operation of the company. Both these documents have to be uploaded along with the SPICe+ form.
5. Company Registration Fees:
Registration fees are determined depending on the type of company and authorized share capital. This fee has to be deposited online on the MCA portal.
6. Certificate of Incorporation:
After review of all the documents and application, a Certificate of Incorporation is issued to the company by the MCA. This certificate confirms the existence of the company and provides the company with a unique Corporate Identification Number (CIN).
Required Documents:
The following documents are required for company incorporation:
1. Proof of identity and address of directors and members.
2. Address proof of registered office.
3. Signed copies of MOA and AOA.
4. PAN Card and Aadhar Card (for Indian citizens).
5. Passport (for foreign nationals).
Important features of the Companies Act 2013:
- Inspection and Enforcement: The Act has a number of inspection and compliance provisions for companies to ensure that companies operate in accordance with the law.
- Audit and Reporting: The Act has stringent accounting and reporting rules for companies so that financial information is transparent and accurate.
- Rights and duties: The rights and duties of directors, members and other concerned persons are clearly stated.
conclusion:
Incorporation of a company under the Companies Act 2013, which provides legal identity and protection to the business. By following the right documents and procedure, any businessman can easily incorporate his company and get legal recognition for his business. After incorporation, the company is required to follow all the legal and regulatory provisions during its operations so that it can function smoothly and enjoy legal protection.
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