Promotion and Company are the two basic formalities that company that need to face when their Business comes into existence. Business or company need to be promoted through marketing strategies. This makes your company public visible in the market. People invest their initial funds are called the promoters of the company.
There are different forms documents prepared by the promoters to make company according to the need of the market. Documents can be Memorandum of association and Article of association. Promoters also have the right to decide whether the company will be private limited company and public limited company.
Memorandum of Association
Following are the charter or constitution that provided in MoA
- Company's name
- Company's Registered Address
- Activities Company wishes to carry on
- Amount of Share capital and units
Article of Association
Following are some of the charter or constitution that provided in AoA
- Set of rules of the internal management of the company.
- According to the Companies act Article of association can be altered from time to time into pursuance or any previous of this act.
- AoA are the subordinate and controlled by MoA
Promoter is mainly a person involved in prelimnary work of the company. It can be renumerated for its services. It has its contract before the formation of the company. Promoters are the nominee or first director of the company. They are also required to work compulsorily in the formation of the company. Professionals such as chartered accountant, solicitor also and they are paid for their service. In India promoters generally secure the management of the company.
Functions performed by the Promoters
- Decision of the name of the company can be accepted by the registrar
- Arranges printing of MoA and AoA
- Details of the Company are added such as MoA, AoA, Nomination of the director, Bankers, Auditors and registered office of the company.
Company incorporation is a lawful mean forbidden law and contrary to the public policy. Many Companies have Certificate of Incorporation but that does not mean company is lawful. Subscribing names MoA putting their signatures to the memorandum.
Documents to be filed by Registrar
- Memorandum of Association signed by the subscriber.
- Articles of Association if any duly signed by the subscribers of the memorandum
- Statement of the nominal capital
- Individual or company proposes to manage whole time director.
- Notice of the address and registered office of the company.
- Things can be filed at the time registered.
- List of the directors and first director of the company.
- Written consent to be signed by each person.
Certificate of Incorporation
After Company Registration, Registrar will issue whereby he certifies that company is incorporated. Date of incorporation mentioned in the Certificate of the incorporation and company becomes capable of all the functions perpetual, common seal etc. It also shows details about the company are separate from its shareholders. Issued by the registrar all the rules compiled within the rule and regulation.
There are many benefits of company registration or incorporation.
- Company become legal distinct entity
- Company acquires perpetual succession
- Company property is not regarded as the property of shareholder
- Establishment of Business Account
- Company can ask ventures to raise funds
- Employees take interest towards the company