by Incorporation means the process of forming and registering a company with the Registrar of Companies (ROC). Once incorporated, the company becomes a separate legal entity.
Steps Involved in Incorporation:
1. Application for Incorporation
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File an application with the Registrar of Companies (ROC).
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Application must be submitted in prescribed forms (SPICe+ form) along with required documents.
2. Required Documents (Section 7(1))
The following documents must accompany the application:
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Memorandum of Association (MOA): Stating company’s name, objectives, and scope.
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Articles of Association (AOA): Rules and regulations for internal management.
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Declaration by professionals: An affidavit by an advocate, CA, CS, or CMA stating compliance with legal requirements.
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Affidavit by subscribers and first directors: Declaring they are not convicted of offences related to company promotion/management.
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Proof of address of registered office.
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Particulars of subscribers to MOA (name, address, occupation, shares taken).
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Particulars of first directors (name, address, DIN, consent to act as director).
3. Verification by Registrar (Section 7(2))
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ROC verifies documents and information.
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If found complete and valid → company is registered.
4. Issue of Certificate of Incorporation (Section 7(2))
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ROC issues a Certificate of Incorporation with a unique Corporate Identity Number (CIN).
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This is conclusive evidence that all requirements of the Act are complied with.
5. Effect of Incorporation (Section 7(3))
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Company becomes a separate legal entity.
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It can sue and be sued, own property, and enter into contracts.
6. Furnishing of False Information (Section 7(4) & 7(5))
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If false information is given during incorporation:
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The promoters, directors, or persons furnishing false details are liable for action.
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Company may be struck off or penalized.
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✅ In short:
Application → Submit Documents → Verification by ROC → Certificate of Incorporation → Company gets Legal Status
