question_answer

What do you mean by incorporation of a company? What are the steps involved in corporation of a company?

Answer:

Ans.     Incorporation of the company: It means registration of the company under Companies Act, 1956. The second stage involves the following steps:

1. Filing of documents: An application to the registrar for incorporation must be accompanied with following documents:

(a) Memorandum of Association;

(b) Articles of Association or statement in lieu of the prospectus (in case table A is adopted by public limited company);

(c) Written consent of proposed directors;

(d) Agreement (if any) with proposed managing director, manager, etc.;

(e) Copy of registrar's letter approving the company's name;

(f) Statutory declaration;

(g) Notice of the exact address of the registered office.

2. Payment of fees: Along with the above documents, necessary fees is to be paid.

3. Certificate of incorporation: The registrar issues a certificate of incorporation after being satisfied. Certificate is a conclusive evidence of regularity of incorporation of a company irrespective of any deficiency in its registration.