What is the Incorporation of a Company?

  • March 17, 2023
  • Registrationwala
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Many times, you have heard the word Incorporation in legal contexts. But what does it means? Incorporation, in the legal context, means is a procedure to form a Corporate Entity that separates its assets and profits from its owners as well as stakeholders. By extension, the Incorporation procedure of a Company means the process of formally registering a Company as a separate legal entity. In India, the Incorporation of a Company means inking the registration details of the Corporation into the RoC, i.e., the Register of Companies. But such an important definition cannot be summed up in a line or two. Through this article, we intend to detail the adopted Company Incorporation procedure in India. 


What is meant by the Incorporation of a Company in India?

Incorporation of a Company means authorizing a Business Setup to dispense their commercial markets within a jurisdiction as per the Regulated Laws. One can materialize their Business Idea into a Company by the due procedure for Incorporation. A Corporate Authority of a Country can legally incorporate a Company. After the incorporation procedure, the newly incorporated Company becomes a distinct legal entity. It means such an Entity has an existence wary of those investing their capital as well as quality labor in setting up and running that Company.


Role of Promoters in Company's Incorporation

The Incorporation procedure of a Company can be divided into multiple steps starting from the first step, i.e., Promotion. Promotion is when an officer is tasked to persuade an Investor(s) to contribute capital in setting up a Company. Such an official is termed the Promoter of the proposed Company. For promotional purposes, Company’s Promoters can even enter into a contract on Company's behalf during or after the Certificate of Incorporation grant. They can also arrange share issues in the Company's tradename.


Provisions of Company Incorporation procedure applicable in India

In India, every process regarding Company, from its Incorporation, Operability, Maintenance, as well as Closure, is detailed by the Companies Act of 2013. It is the foremost legislature regulating every aspect of Company Registrations in India. Nothing falls out of the Companies Act when it comes to dealing with registered Companies in India.;

Let us define the major stipulations for forming different kinds of Companies in India. A Company can be incorporated in India for lawful purposes by arranging the following:

  • The Management must have at least seven persons to set up a Public Limited Company in India
  • The Management must have at least two persons to set up a Private Limited Company in India
  • A Company can be incorporated as a One Person Company by subscribing their names to a Memorandum as well as complying with  the Companies Acts requirements

You can get details about the nature of the different companies in our Company Registration types blog. In addition to this, a company can be incorporated in multiple arenas of liability, as per the Companies Act’s sub-section (1), as stated in the following bullets:

  • Company Limited by Shares: Such a Corporation limits the liability of its members to their share stocks held in the Company
  • Company Limited by Guarantee: Such a Corporation limits the liability of its members to the guarantees subscribed by them with the Company
  • Unlimited Company: Although such companies flow against the intended nature of a registered Corporate Entity, an Unlimited Company limitlessly makes its members liable for all its debts and obligations

To know about the Company Registration procedure applicable in India, refer to our Company Registration service page.


Company Registration Status: How to check if a Company exists or not?

The Ministry of Corporate Affairs, or the MCA, is the sole Corporate Authority of India. MCA maintains a thorough record of all Registered Companies operating in India. The MCA shares such a list of companies with the general public to check and verify the proposed Company’s prior existence. The company record list is termed the Register of Companies, and the Registrar of Companies maintains it. You can conduct a Company Name Search at the MCA portal to check the registration details of the Incorporated Companies.

The registered companies' details will be showcased when you enter the CIN or the Company Identification number in the Company Name Search bar, such as:

  • Company Identification Number
  • Company/LLP Trading Name
  • State of Origin
  • Date of Company Registration & Incorporation
  • Company Status & Category
  • Company Class
  • Capital Requirements, such as Authorized & Paid-Up capital
  • Registered Address and Contact Details of the Company
  • Latest Annual General Meeting details and so on

If you have more queries on the incorporation procedure employed for Company Registration in India, you can chat directly with the Incorporation Team at Registrationwala. 



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