Benefit of Company Registration and Know Its Importance

Company is a voluntary association of members formed for the common purpose. It can be registered by Registrar of Companies(ROC). In India company can be incorporated either as public limited company or private limited company. Procedure for registration of a company is same through out India. First step for incorporation is getting name approval from registrar of companies (ROC). After name approval Memorandum of Association and Articles of Association has to be submitted with other documents to Registrar of Companies. Memorandum of Association is the constitution of a Company. Anything beyond Memorandum of Association is ultra vires whereas Articles of Association are bye laws of the company.

Certificate of incorporation and commencement of business is to be obtained in case of public limited company however private limited company registration has to obtain only certificate of incorporation to start business. ROC has started system of e-filing since 2007. One has to obtain Director Identification Number (DIN) and Digital signature Certificate (DSC) for each director/promoter before making application to ROC. Application for name availability is to be given to ROC with requisite fees. Once it is approved by ROC then it remains valid for six months and it can be renewed by paying requisite fees and certain documents are to be submitted with ROC for company incorporation. After getting name Memorandum of Association , Articles of Association and letter of authority to carry out corrections has to be submitted with other certain documents to Registrar of Companies (ROC). All documents are to be submitted in original to ROC. ROC will scrutinize the papers and if any modification is required then it will direct to make such changes accordingly. Once ROC scrutinizes all papers and is satisfied then company comes into existence after receiving certificate of incorporation however Public limited company has to obtain further commencement of business certificate to commence its business operations.

Following points can be noted about incorporation of a company:

1. Any person can be director whether foreigner or Indian in Indian Company.

2. Any individual whether foreigner/ Indian can be shareholder in Indian company but foreigner has to comply with foreign exchange laws in India.

3. Minimum four Board Meetings has to be held whether in India or abroad. It can be held anywhere in the world.

4. The trademark registration fee and stamp duty depends on the authorized capital of the proposed company.

5. Following points can be noted in relation to proposed private limited company-
(i) Minimum Shareholders required is two
(ii) Minimum Directors required is two
(iii) Minimum Paid up capital is Rs. INR 1,00,000


6. Following pints can be noted in relation to proposed public limited company-
(i) Minimum Shareholders required is seven
(ii) Minimum Directors required is three
(iii) Minimum paid up capital is Rs. INR 5,00,000