About Company Incorporation
The word ‘Company’ has a strict legal meaning according to the provisions of the Companies Act of 2013, a company refers to a company formed and registered under the Companies Act. In common law, a company is a “legal person” or a “legal entity” which is separate and capable of surviving beyond the lives of its members.
Incorporation of a company refers to the setting up of a company according to the provisions laid out in the Companies Act of 2013. This article deals with the process of incorporation of a Company, the advantages that an incorporated company would have over the Non-Incorporated Companies and also the disadvantages of Incorporation of a Company.
Advantages of Incorporation of a Company
The advantages mentioned below are only enjoyed by the companies which are incorporated according to the provisions laid out in the Companies Act of 2013. Non incorporated companies do not enjoy these benefits.
Registration and Incorporation of Company
A company can get incorporated as various types of businesses which generally depends on the need and the capital of the business owner. These various types include one person companies, public limited companies, private limited companies, limited liability partnerships, foreign companies etc. Barring a few minor differences, all these various forms are incorporated in more or less the same way.
According to Section 33 of the Companies Act, 2013, the registration of a company is obtained by filing an application with the Registrar of Companies. Other than the application, the following documents should also be submitted. These include the Memorandum of Associations and the Articles of Association (if necessary).
Articles of Association are deemed necessary only for unlimited companies. A copy of the agreement which the company proposes to enter into with any individual for his or her appointment as a director or a manager also needs to be given if at all someone has been appointed. Lastly, a declaration that all the requirements of the Act have been complied with also needs to be given.
The preparation of a document known as Memorandum of Association is the first step in the formation of a company. This document contains the constitution of the company.