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Incorporation of a company
Corporate & Other Laws
Ehats the difference between incorporation of company and effect of registration (registration of a company)
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Effect of Registration From the date of incorporation, the subscribers to the memorandum and all other persons, who may from time to time become members of the company, - shall be a body corporate by the name contained in the memorandum. - Capable of exercising all the functions of an incorporated company under this act and - Having perpetual succession with power - to acquire, hold and dispose of property, - to contract, and - to sue and be sued, by the said name.
Incorporation typically refers to the process of forming a company and getting it recognized as a separate legal entity by the Registrar of Companies (RoC) in India. Key Points: Governed by Section 3 to 7 of the Companies Act, 2013. Incorporation of a company Involves steps like: Selecting Company Name Drafting and filing Memorandum (MoA) & Articles of Association (AoA) Filing Incorporation forms (SPICe+, AGILE-PRO, etc.) Appointment of Directors Obtaining Certificate of Incorporation (COI) Outcome: Once the Registrar is satisfied with the submitted documents and provided information, the company is incorporated and a Certificate of Incorporation is issued. Effect of Registration (Section 9 of Companies Act, 2013) Definition: This refers to the legal consequences that follow once a company is incorporated and registered. Key Effects: The company becomes a corporate body. It acquires a separate legal identity from its members. It has perpetual succession. It can own property, enter into contracts, and sue or be sued in its own name. The Memorandum and Articles become binding contracts between the company and its members. In short, this is where the legal personality of the company begins. If you need more clarity on incorporation and effect of registration of a company in India, many experts i.e. Setindiabiz, are there to guide you! Hope it was helpful!
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