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Company Formation

Incorporating a Company - The Approval of the Name: The approval of the name by the Registrar of companies (ROC) is the first step in the formation of a company in the state /union territory in which the company will maintain its registered office. This approval is offered subject to certain conditions: - For example, there should not be existing company by the same name. Additionally, the last words in the name are needed to be "Private Ltd." In the case of a private company and "Limited" in the case of a Public company.

Memorandum and Articles: The memorandum and articles of association and of association are the two most important documents to be submitted to the ROC for the purpose of incorporation of a company. The Memorandum of Association is a document, which sets out the constitution of the company. It contains the objects and the scope of activity of the company and also defines the relationship of the company with the outside the world. The articles of association contain the rules and regulations of the company for the management of its internal affairs. While the Memorandum specifies the purposes and objects for which the company has been formed, the articles lay down the regulations and rules for the achieving those purpose and objects. At last, the ROC issues a certificate of commencement of business to the public company. The company can originate business immediately after the receiving this certificate.

Certificate of Incorporation: After the duly stamped Memorandum of Association and Articles of Association, documents and forms are filed after filing fees, the ROC scrutinizes the documents and, instructs the authorized person to make compulsory corrections. This takes one to two weeks from the date of filing Articles of Association and Memorandum of Association to receive a Certificate of Incorporation. Though a private company can inaugurate business immediately after receiving the certificate of incorporation.

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