Steps involved in Incorporation of a Company (Section 7 of The Companies Act 2013)

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

  • File an application with the Registrar of Companies (ROC).

  • 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:

  1. Memorandum of Association (MOA): Stating company’s name, objectives, and scope.

  2. Articles of Association (AOA): Rules and regulations for internal management.

  3. Declaration by professionals: An affidavit by an advocate, CA, CS, or CMA stating compliance with legal requirements.

  4. Affidavit by subscribers and first directors: Declaring they are not convicted of offences related to company promotion/management.

  5. Proof of address of registered office.

  6. Particulars of subscribers to MOA (name, address, occupation, shares taken).

  7. Particulars of first directors (name, address, DIN, consent to act as director).

3. Verification by Registrar (Section 7(2))

  • ROC verifies documents and information.

  • If found complete and valid → company is registered.

4. Issue of Certificate of Incorporation (Section 7(2))

  • ROC issues a Certificate of Incorporation with a unique Corporate Identity Number (CIN).

  • This is conclusive evidence that all requirements of the Act are complied with.

5. Effect of Incorporation (Section 7(3))

  • Company becomes a separate legal entity.

  • It can sue and be sued, own property, and enter into contracts.

6. Furnishing of False Information (Section 7(4) & 7(5))

  • If false information is given during incorporation:

    • The promoters, directors, or persons furnishing false details are liable for action.

    • Company may be struck off or penalized.

In short:

Application → Submit Documents → Verification by ROC → Certificate of Incorporation → Company gets Legal Status

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