Incorporation of Company

incorporation of Companies

Incorporation is a legal process in order to form a company or a corporate entity. In other words, incorporation means the registration of the Company in Registrar of Company (Known as ROC). The corporation is a legal entity that separates the income and firm’s assets from its investors and owners.

The incorporation of Companies in India or any foreign corporation is regulated by the Companies Act, 1956. The Companies Act deals with all the requirements of establishing the rules and regulations of both private and public companies in India.

The very primary step to form a company is the approval of the name by the Registrar of Companies in the State/Union Territory where the company will maintain its registered office. But this comes with certain conditions as well as there should not be any two companies with the same name. The last words in the name are required to be “Private Ltd.” in the case of Private Company and “Limited” in the case of a Public Company. For foreign countries who engaged in trading and manufacturing activities are permitted by the Reserve Bank of India to open its branch in India.

The ROC informs the applicant within seven days from the date of the application submission, whether or not any of the names applied for is available. Once the name is approved then it will be valid for six months within which time the Memorandum of Association and Articles of Association together are required to be filed. After all these the documents and forms are filed and the filing fees are paid. Then the ROC will scrutinize the document and will instruct the authorized person to make certain corrections if necessary. After all the required documents are presented along with the requisite registration fee, the ROC will give the certificate of incorporation.

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Frequently Asked Questions

What is the meaning of Incorporation?

Incorporation is a legal process in order to form a company or a corporate entity.

What is ROC?

The ROC stands for the Registrar of Companies. It is an office under the Indian Ministry of Corporate Affairs that deals with the administration of the Companies Act 1956 and Companies Act, 2013.

Who permit foreign countries company to open its branch in India?

Reserve Bank of India.

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