![\"How](\"https:\/\/www.smartcorp.in\/blog\/wp-content\/uploads\/2019\/08\/company-regis-1.jpg\")
<\/figure><\/div>\n\n\n\nChiefly, the word \u201ccompany\u201d refers to a legal entity formed by a group of individuals to run and operate a business, it can be commercial or industrial enterprises. Well, company can be organized in different ways for tax and other financial liability purposes depending on the law. The company formation<\/a> <\/strong>refers to the setting up of a company according to the provisions listed in the Companies Act of 2013. The startup companies are also mandatorily incorporate under the companies\u2019 law. To incorporate a company there are certain rules and regulations must be followed.<\/p>\n\n\n\n A company can be incorporated into various\ntypes based on the need and the capital investment of the business owner. These\nvarious types includes private limited companies, public limited companies, one\nperson companies, limited liability partnerships, and partnership firms etc.\nAll the companies incorporated will be more or less same and they bear few\nminor differences.<\/p>\n\n\n\n Moreover, according to Section 33 of the Companies Act, 2013, the company registration <\/a>is obtained by filing an application with the Registrar of Companies. Other than the application, the following documents should also be submitted by the applicant. These include the Memorandum of Associations (MOA) and the Articles of Association (AOA).<\/p>\n\n\n\n Articles of Association are\nneeded only for unlimited companies. An agreement copy which the company\nproposes to enter into with any individual for his or her appointment as a\ndirector or a manager also needs to be given if at all someone has been\nappointed. Lastly, a declaration that all the requirements of the Act have been\ncomplied with also needs to be given.<\/p>\n\n\n\n In addition, this states that a company is independent to incorporate and separate from its members, and the members cannot be held liable for the acts of the company, even when a particular member owns majority of shares.<\/p>\n\n\n\n The word perpetual succession refers to continuous existence, which means that a company will never dies, even if the members cease to exist. The membership of a company<\/a> <\/strong>changes from time to time, but that has no effect on the existence of the company.<\/p>\n\n\n\n Since a company is termed as a separate legal entity in the eyes of law, the incorporate features defines, it can hold property on its own name and the members cannot claim to be the owner of the companies\u2019 property.<\/p>\n\n\n\n Moreover, the Company has the capacity of suing a person or being sued by another person in its own name. A company can change its name only when it is represented by a natural person and any complaint which is not represented by a natural person is liable to be dismissed in the same way.<\/p>\n\n\n\n Simultaneously, raising capital is easier for a corporation. This helps your business to grow and develop. They can also easily lend money from the banks for the business growth.<\/p>\n\n\n\n The cost to incorporate a company includes the fee required to file your articles of incorporation, or accountant fees, or the cost of filing of the paperwork. <\/p>\n\n\n\n Since, some types of corporations such as a C Corporation will result in \u201cdouble taxation.\u201d Double taxation occurs when a company is taxed once on profits, and again on the dividends paid to those shareholders.<\/p>\n\n\n\n In case of company<\/a>, that is a stock corporation. The one person cannot take complete control of the entity. The corporation is governed by the board of directors who are elected by the shareholders.<\/p>\n\n\n\n However, most of the firms are required to file annual reports on the financial status of the company. The ongoing paperwork also includes tax returns, accounting records, meeting minutes and any required licenses and permits for conducting business.<\/p>\n\n\n\n While perpetual existence is a\nbenefit of company incorporating, it can also be a disadvantage because it\nrequires significant time and money to complete the necessary procedures for\nwinding.<\/p>\n\n\n\n Consequently, when it comes to\ncompany formation, every firm will choose the following two options:<\/p>\n\n\n\n The major differences between\nPrivate companies and Public companies are:<\/p>\n\n\n\n The preparation of a document known as Memorandum of Association is the first step in the company formation.<\/a> This document contains the constitution of the company.<\/p>\n\n\n\n Since, all the companies in India are legally required to have a memorandum and articles of association. These governing documents are produced during the company incorporate process and registered at Companies House.<\/p>\n\n\n\n The memorandum of association is a legal statement which contains the names of those founding members of the firm. By signing this document, the subscribers are agreeing to form a company and become member of the company.<\/p>\n\n\n\n Likewise, this legal document cannot be altered prior to company formation<\/a>, or the names of the subscribers cannot be changed or removed after incorporation of the company.<\/em> This is a historical document that will always remain the same, regardless of whether any original members leave or new members join the company.<\/p>\n\n\n\n At the time of company incorporation, the companies should submit memorandum to the Companies House along with the articles of association and the application form to register a company. Moreover, it is a public document that can be viewed by anyone through Companies House. All companies must submit a copy of the memorandum at their registered office.<\/p>\n\n\n\n The article of association\nconsists of multiple pages and it forms the constitution of a limited company.\nThis document is essentially an internal rulebook that states the way in which\na company should be structured and managed in terms of the following:<\/p>\n\n\n\n Besides, Companies House will issue you the certificate as soon as your company registration<\/a> application has been approved. If you register your company through online with the help of company formation agent, you will receive the certificate in PDF format via email within 3 hours of the submission as soon as your registration is done.<\/p>\n\n\n\n If you register your company using\na postal application, your certificate will arrive by post only when the\nCompanies House approves your application. Postal applications take maximum of 8\n\u2013 10 days to process, so it\u2019s more beneficial to register online.<\/p>\n\n\n\n This is the first process in company registration<\/a>, each director of the company should obtain their identification number. As per the amendment act of 2006, DIN is compulsory for every director. To get DIN you should file an e-Form DIN-1.<\/p>\n\n\n\n In order to ensure the security of documents filed electronically the information act 2000 demands a valid digital signature on the documents submitted electronically. This is the only and safest way that you can submit your documents electronically. <\/p>\n\n\n\n In the same way, the digital signature certificate should be acquired in government approved agencies which are appointed by the controller of certification agencies (CCA) for registration. You should check for your digital signature validity, agencies issue DSC\u2019s with one or two year validity after expiry you have to renew it.<\/p>\n\n\n\n However, you have to register on MCA Portal for filing an eForm, for online fee payment, for different transactions as registered and business user. Creating an account is totally free of cost. You can also register yourself in MCA portal.<\/p>\n\n\n\n As a result, this is the final major step in a company registration<\/a> which includes incorporating company name, registering the address of the company and notice for appointment of company directors, manager and secretary and also the shares paid by each director.<\/p>\n\n\n\n Form-1A: Form- 1A deals the\napplication for availability or change of a company name. Once you apply for\nnew company name, the MCA will suggest you four different forms of your company\nname; you have to choose any one from them.<\/p>\n\n\n\n Form-1: This is the application for declaration of incorporation of a company<\/em>. In this form, you have to use the same name which you have chosen during application of form-1A.<\/p>\n\n\n\n Concurrently, this form deals with the location of a new company office or change of address of previously registered office.<\/p>\n\n\n\n For a new company you have to\nfill the form with office address and then submit.<\/p>\n\n\n\n For a new company<\/a>, this form deals with the notice for appointment of new Directors, Managers and Secretary.<\/p>\n\n\n\n This form is for a change of\ndirectors, Manger, Secretary or company head for the existing companies.<\/p>\n\n\n\n After\nsubmitting these forms, you will receive a confirmation email regarding the\napplication for incorporation of a new company, and the status of the form will\nget changed to Approved on the approval of MCA.<\/p>\n\n\n\n For obtaining name for your new\ncompany, an application in Form-1A should be filed with the Registrar of\nCompanies (ROC) of the state in which the Registered Office of the proposed\nCompany is to be located.<\/p>\n\n\n\n Eventually, you have to provide four alternative names for the proposed company. Your company name should not resemble the name of any other incorporate company or violate the provisions according to Act, 1950.<\/p>\n\n\n\n In this form, you have to fill the name and addresses of directors i.e. minimum 2 members for a private limited company<\/a> and 7 members for a public limited company<\/em>. You have to clearly mention the main objects of the company and also the authorized capital.<\/p>\n\n\n\n In fact, the ROC will inform you about approval or objections in about 10 days. If there are any objections, then ROC will suggest you with some available names and let you choose among them. Specifically, if your company name is approved, then you will receive a formal letter regarding the confirmation of the company name. You can use the same name during registration process of the proposed company.<\/p>\n\n\n\n A company registration number (CRN) is a combination of 8 numbers, or 2 letters followed by 6 numbers. This CRN is used to identify your company or limited partnership<\/a> and also verify its legal existence as an incorporated entity. Companies House will issue a number called CRN during the company formation process. You can find the CRN in the printed format on your Certificate of Incorporation and all other official documentation received from Companies House.<\/p>\n\n\n\n In essence, a company registration number (CRN) is also known as a \u2018Companies House Registration Number\u2019 or \u2018company number\u2019.<\/p>\n\n\n\nIncorporate and register a Company: <\/h2>\n\n\n\n
Advantages of company registration:<\/h3>\n\n\n\n
![\"How](\"https:\/\/www.smartcorp.in\/blog\/wp-content\/uploads\/2019\/08\/What-is-a-company-formation.jpg\")
<\/figure><\/div>\n\n\n\nCreates a Separate Legal Entity: <\/h4>\n\n\n\n
Company has Perpetual Succession:\n<\/h4>\n\n\n\n
Can own Separate Property: <\/h4>\n\n\n\n
Capacity to sue and be\nsued: <\/h4>\n\n\n\n
Easier access to Capital:<\/h5>\n\n\n\n
Disadvantages of Incorporation of\na Company:<\/h4>\n\n\n\n
Cost:<\/h6>\n\n\n\n
Double Taxation:<\/h6>\n\n\n\n
Loss of Personal Ownership:<\/h6>\n\n\n\n
Ongoing Paperwork:<\/h6>\n\n\n\n
Difficulty Dissolving:<\/h6>\n\n\n\n
Comparison between private companies\nand the public companies:<\/h4>\n\n\n\n
![\"\"](\"https:\/\/www.smartcorp.in\/blog\/wp-content\/uploads\/2019\/08\/public-to-private-company.png\")
<\/figure><\/div>\n\n\n\nForemost documents:<\/h5>\n\n\n\n
Memorandum of Association:<\/h6>\n\n\n\n
![\"How](\"https:\/\/www.smartcorp.in\/blog\/wp-content\/uploads\/2019\/08\/company1.jpg\")
<\/figure><\/div>\n\n\n\nArticles of Association:<\/h6>\n\n\n\n
Certificate of incorporation:<\/h5>\n\n\n\n
![\"\"](\"https:\/\/www.smartcorp.in\/blog\/wp-content\/uploads\/2019\/08\/certification-788x1024.jpg\")
<\/figure><\/div>\n\n\n\nThe registration procedure – 4 Steps<\/h5>\n\n\n\n
![\"\"](\"https:\/\/www.smartcorp.in\/blog\/wp-content\/uploads\/2019\/08\/steps-in-company-registration.jpg\")
<\/figure><\/div>\n\n\n\nStep 1: Acquire Director Identification Number (DIN)<\/h6>\n\n\n\n
Step 2: Acquire Digital Signature Certificate (DSC):<\/h6>\n\n\n\n
Step 3: Create an account on MCA Portal \u2013 New user\nregistration<\/h6>\n\n\n\n
Step 4: Apply for the company registration:<\/h6>\n\n\n\n
Form-1:<\/h6>\n\n\n\n
Form-18:<\/h6>\n\n\n\n
Form-32:<\/h6>\n\n\n\n
Procedure for approval of the proposed company name:<\/h5>\n\n\n\n
![\"\"](\"https:\/\/www.smartcorp.in\/blog\/wp-content\/uploads\/2019\/08\/company-name-approval.png\")
<\/figure><\/div>\n\n\n\nCompany Registration Number:<\/h6>\n\n\n\n
Documents Required to Register a\nCompany in India:<\/h4>\n\n\n\n
![\"\"](\"https:\/\/www.smartcorp.in\/blog\/wp-content\/uploads\/2019\/08\/INCOME-TAXFILING-1-1024x1024.jpg\")
<\/figure><\/div>\n\n\n\n![\"\"](\"https:\/\/www.smartcorp.in\/blog\/wp-content\/uploads\/2019\/08\/How-to-incorporate-and-register-a-company-or-startup-company-in-India-363x1024.png\")
<\/figure><\/div>\n","protected":false},"excerpt":{"rendered":"