This is one of the most common important legal registration processes that should be maintained by every company. This is designed with the separate legal entities of its organization. As per The Companies Act, 2013, the regulation details and registration paper of a company have a significant role in the whole process. best law firm in Delhi
As an example after making the whole process of incorporation of a company, the company will be dignified as “ Pvt Limited or Ltd” and the company will get a unique corporate identity number.
Process of incorporation of a company
- Acquire Digital Signature Certificate: The first step of incorporation of company procedure involves acquiring digital signature certificate or DSC that certifies the holder identity. A digital signature certificate contains name, email, country,APNIC account name and the public key. Digital signature certificate is also named as an electronic credit card that helps in making the credentials in any business or any other webtransaction.
The digital signature certificate is a mandatory part in the application of Memorandum of Association and Articles of Association. One can apply for the digital signature certificate by filling anDSC application e-form which is necessary in making the whole process.
- Director Identification number approval: DIN or Director Identification number that allots Central Government to the person who wants to be a director for any company. This eight digit unique identification number has lifetime validity. DIN can beallocated for a specific one person. Even when he is a director in two companies, he will be given with one DIN. If the person leaves the company, then the same DIN will work for another company as well. You need to have a DIN for making the next step in incorporation of the company. Apply for DINhere.
- Application for name approval: As the first step, the company is required toobtain its name approval from the company register. The company name should be unique and not prohibited as per the Emblems andNames Act,1950.
The applicant can also refer to three names panels so that the approval process can not be delayed. The register of the company will approve the name within 14 days from the application date. For information, visit here.Preparation of Memorandum of Association: The Preparation of Memorandumof Association involves the company constitution where the company’s objects, scope, and other relationship will bedescribed.
In case if it is a public company, the memorandum needs to be signed by at least seven persons or if it is a private limited company, then it needs at least two person signatures there.
- Preparation of Articles of Association: The article of Association refers to a document where all the rules and regulations of the internal management ofthe company will bementioned.
If it is a public limited company, then it needs to take the model clauses mentioned in Table A as per the Act of schedule 1 instead of filing its Article of association.
- Printing, Signing, stamping, vetting of the articles and memorandum of association: This is the third step where the memorandum and article ofthe association will have necessary printing, signing, stamping,etc.
In that case, the company can also get other forms that need to be filled up by the company during the process of incorporation of the company. After making all these the article and memorandum can be presented to the company register for further vetting and approval process.
- Power of Attorney: The most important step of incorporation of the companycomes with the authorization of the local director who can act as the power of attorney on behalf of the company. For the offshore company, this is the most important step that needs to be done. The attorney can make changes to the registered documents with the permission of otherdirectors.
- Payment: During incorporation of the company, the fees should be paid. The incorporation of company costs will be based on the nominal capital of thesame company.
Advantages of incorporation of the company
Operating a business and owning it is risky. In that case, the only way to protect it is through the incorporation of the company. Because it involves more paperwork and expense which can pay off you its fullest legal and tax advantages. To get tax advantages you must fill this
It protects personal assets
Every business has its property, incur liabilities, and any other sues. Incorporation of the company limits the power of the creditors who can only seek its payment from the corporation asset not from the personal assets of the directors and other shareholders.
It allows in accessing the capital easily
An incorporated company may raise its capital in various ways such as issuing shares or bank loans. In that case, the investors and banks give preference to them who have already incorporated their company. Apart from that, the incorporated company can use other alternative sources of capital that an unincorporated company can not.
It helps in perpetual existence
The incorporation of the company is one of the important legal structures for any business. It allows the business to operate the business without any legal entanglements even when anything happens to any individual director, officer, manager, shareholders, or anyone else. But remember, all these formalities should be mentioned in the article of association or memorandum. These are all about the process of incorporation of the company and its benefits. To consider all of these businesses and to protect it, you should register your incorporation application immediately. Do it and enjoy the benefits of the lifetime.