Certificate of incorporation is a legal document required at the time of company formation. It is said to be a license to form a company, issued by the state government. The private limited company in India is measured by the shares that is a shareholders is only liable to a limit of creditors. A Pvt. limited company cannot offer their share to general public, so it cannot trade on the public stock exchanges, the main difference between a Private limited and public limited company. The private limited company has to suffix limited or incorporation as the name is the reason of lid or inc written at the end of the company name.
For registration as a private limited company certificate of incorporation is the last step, which is mailed after the approval all documents required for the company formation.
Private company registration or Company formation includes mainly 7 steps that are:-
- Filling application for DIN and DSC that are Director Identification Number and Digital signature Certificate
- Selecting and checking and then applying for availability of the name selected
- Drafting of MOA and AOA that are Memorandum of association and article of association respectively
- Filling of E-forms with Registrar of companies
- Registrar of companies’ fees and stamp duty has to be paid for it.
- All verification of the documents/forms by Registrar of companies
- After all these, Certificate of Incorporation is issued to director of company
This process can also be seen as issuing of the Certificate of Incorporation which is necessary for the company formation.
Certificate of Incorporation is the legal document which makes the company formation valid or brings the company into existence. Certificate of Incorporation mainly includes five things in it
- The name of the corporation with its abbreviation
- A statement of business purpose
- The corporation’s registered office’s address and the name of registered agent for the address
- Number of the shares of stock which are authorized to be issued and a description of the different types of stock that can be issued by the Company if there are more than one type
- The name and address of the corporation’s incorporated
Certificate of incorporation has been divided into the different articles but there are many others things that can be included in the certificate of Incorporation. There should be a digital signature which should add by the director of the corporation.For more information, Contact LegalRaasta.
