As per provisions of the Companies Act of 2013, a company is a firm founded and registered under the Companies Act.
According to common law, a business is a "legal person" or "legal entity" that is separate and capable of existing beyond the lifetimes of its members. A company's incorporation refers to its formation under the Companies Act of 2013 provision.
Through this article, you get the answer to “how to get certificate of incorporation” and discuss the advantages of obtaining a certificate of incorporation.
How to get a Certificate of Incorporation
Indian law has made it straightforward to create a new company in just a few days, according to MCA (Ministry of Corporate Affairs) rules and regulations.
These are the four crucial steps to obtaining a certificate of incorporation in India.
- Acquire Director Identification Number (DIN)
- Acquire Digital Signature Certificate (DSC)
- Finding an eForm or Registration of a New User
- Incorporate the company
To have a functional business in India with zero legal concerns, obtaining a business registration certificate is mandatory. You may find numerous chances, and soon you may find yourself on the road to success; thus, adhering to the country's proper regulations is critical.
- Acquire Digital Identification Number
It is the first step in obtaining the certificate of incorporation. Every director must obtain a DIN under the Companies Act of 2006. Follow the below steps to obtain DIN
- On the MCA website, create an account and register yourself. After filling in the details, download the form and upload it. There will be expenses associated with this procedure.
- Once the DIN is received, notify the company.
- In addition, the information should get shared with the Registrar of Corporate (ROC).
- If there are any changes to the DIN information, the director should notify the company by filing a new form.
- Acquire Digital Signature Certificate
A valid signature on all the company registration papers is mandated by the information act 2000 to ensure that the papers furnished are authentic and genuine.
If you already have a digital signature, you can use it, but double-check its validity because agencies issue DSCs that are good for one or two years.
- Finding an eForm or Registration of a New User
As a registered business user, create a new account to be useful for online fee payment and other operations. There are no charges to create an account.
- Filing an Application to Incorporate the company
It is the final and most crucial phase that includes adding the company name, registering the office location/address, and providing information on the firm's directors, manager, and secretary. Also, if applicable, additional information about the distribution of shares of the company should get filled in along with other details.
The ROC will then verify all the details provided by you and issue a certificate of incorporation India if the details furnished are true and correct.
Advantages of Incorporation of a Company
Separate Legal Entity
When a company is incorporated, it gains its legal personality. Unlike a partnership firm, which has no legal identity, the incorporated corporation has its own legal identity that is separate from its shareholders and members. As a result, the corporations can own properties in their names, sign contracts, etc.
Perpetual Succession
The term "perpetual succession" refers to the fact that the company's longevity is independent of its members' financial condition. Even if all of the company's members become bankrupt or die, the business will not dissolve on its own unless forced to dissolve on the grounds outlined in the act.
Transferable Shares
Section 82 of the Companies Act of 2013 declares that a company's shares are movable and transferable in the manner specified in the articles of incorporation. So, it allows the member to sell his shares on the open market and recoup his investment without taking money out of business.
Flexibility
Every corporation has entire autonomy in developing rules tailored to its needs, as long as they do not contradict broad principles of law and equity.
Limited Liability
Because the corporation is a separate entity with its own life, its members are not responsible for its debts. Members' obligation is restricted to their stake in the company, and their responsibility ends there. No one is obligated to pay more than he has invested.
To Conclude:
To summarise the procedure for obtaining a certificate of registration - once you've decided on the type of business you want to start, there are just four stages left. Obtain the DIN, DSC, register as a new account on the site, and finally, complete and submit the required forms.
