The incorporation of the company represents the way how the company is professionally or legally established and brought into existence. Although, Incorporation of the company includes drafting and signing up the article of incorporation and further recognizing the shareholders.
When two or more people, minimum of seven in the state of public limited come collectively to form a company for making lawful business after revealing their names in the memorandum of association and meeting the other legal necessities. Additionally, this connects to the incorporation of the company.
Why do you need to Incorporate Your Business?
You need to incorporate your company or business for:
- Protection of the liability
- Savings of tax
- The credibility of the business
- Perpetual duration
- Ease of raising capital
- Ownership transfer
- Privacy
In the journey of incorporation of the private company, lots of information and reports or documents are needed to be compiled, unless the company would be registered with the registrar of companies. Moreover, this one must guarantee that all the reports should receive and collect properly in the attachment. Hence, an effort has been executed to make a checklist of all the required documents or details that are needed to fill the incorporation form. Moreover, The checklist for the incorporation of a business or company is as follows:
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For Name Approval
The following documents are needed for approval of the name:
- The name should be different and distinct from existing businesses and trademarks.
- Permission from regulators like IRDA, RBI, SEBI etc.
- NOC (No Objection Certificate) of the trademark owner
- Board resolution from the holding company in case of incorporation of Subsidiary Company
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For DSC Application
- Copy of Self-attested Address Proof
- Copy of Self-attested PAN
- Valid Email ID of the Applicant
- Photo of the Applicant
- Valid Mobile Number of the Applicant
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For DIN (Director Identification Number) Application
The following details/documents required for the DIN provision
- Self attested ID proof apart from PAN
- Self-attested copy of Utility bill not older than 2 months
- Self attested PAN of the applicant
- Occupation
- Place of Birth
- Education Qualification
- Duration of stay at the current address
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For Company Incorporation
- ID proof and address proof of the promoters
- Objects of the company
- Further, approved capital and the proportion of contribution
- Proof of ownership along with NOC of the owner
- Utility bill for the registered office of the company
- ID and address proof of the candidate
- Declaration by the first subscriber and the managers or directors of the company
- In the case of foreign subscribers, MOA and AOA in hard copies
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Special tips
- All the papers and documents need to be self-attested by the applicant.
- The address proof of the applicant or certified office need not be older than two months.
- Additionally, all documents attached and annexed should be clear and legible.
- The object should have protection. Next, any object which needs prior permission of any regulator, then such approval should have proper security.
- Likewise, the object should not add any activity under any law for the time being in force which is already under prohibition..
Know more: How to register a company
Benefits of Company Incorporation
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Helps to Generate Capital
Capital is the money that needs to produce goods and services. In fact, a business or company has two forms of obtaining capital: equity, which means raising funds for the public and money referring to bank loans or other forms of credit. Likewise, it is estimated as more reliable, when a company is organised; therefore it shall be simple to obtain capital.
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Separate Entity
In fact, A company is a separate legal entity to the following stakeholders:
- Promoters: People who started the company setup
- Directors: People who manage the company and maintain its business
- Shareholders: People who own the company
The hallmarks of this theory are:
- The company can get, sell and own property
- The company can claim and be sued in its name
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Limited Liability
Accordingly, Members are legally bound to pay only to the extent of their undischarged liability. Further, in the case of a company that has restrictions by shares, it is to the amount payable on their shares.
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Transferability of Shares
Shares are viewed at the level with a movable property and hence it is portable and easily from one person to another. Moreover, this viewpoint gives liquidity to the shareholders. Members are in a place to encase the shares at any point as they will. The shares can transfer in a public limited company. Further, In a private limited company, the share transfer is not common due to it being closely-held, but is not prohibited.
