What is Incorporation of a Company?
The Registrar of the Company (RoC) provides every company with a Certificate of Incorporation after verifying all the details that are submitted for the Incorporation of the company. Section 7 of the Companies Act, 2013 provides a list of documents that are essentially required for the registration of a company. The Registrar of the Company (RoC) then enquires regarding the validity of these documents, and only after the satisfaction of the registrar, the company is issued the Certificate of Practice. The company must register the Article of Association and Memorandum of Association with the registrar of the company.
Incorporation of a Company: Advantages and Disadvantages
Incorporation of a company can be understood as the process of starting the company. In India, the process of Incorporation of a company is governed by the Companies Act, 2013. Any company cannot start their business without incorporating the same with the help of the registrar of the company.
Key Takeaways:
- Only after the incorporation of a company, does it get the status of a legal entity and a separate identity.
- All the benefits that are available to a company will be only applicable after the incorporation of the company.
- The Corporate Identification Number (CIN), which is given to the company by the registrar of the company is a unique identity number for every company. This number is required by the company in doing their transactions, opening bank accounts, and registering themselves in different government schemes.
Table of Content
- What is Incorporation of a Company?
- Advantages of Incorporation
- Disadvantages of Incorporation
- Conclusion
- Incorporation of a Company – FAQs