{"id":42617,"date":"2022-04-25T11:56:19","date_gmt":"2022-04-25T06:26:19","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=42617"},"modified":"2024-04-29T15:43:58","modified_gmt":"2024-04-29T10:13:58","slug":"certificate-of-incorporation-meaning-significance-and-legalities","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/certificate-of-incorporation-meaning-significance-and-legalities\/","title":{"rendered":"Certificate of Incorporation: Meaning, Significance, and Legalities"},"content":{"rendered":"\n<p class=\"has-drop-cap\">For\ncommencing any type of business in India, it is vitally imperative to give that\nlegal business status. In our country, there are arrays of legal structures\nsuch as Partnership firm, sole proprietorship, LLP, Partnership, Private\nlimited company, etc., available to select from, and determination of the form\nof business structure is one of the critical decisions before commencing a\nbusiness. Let us assume that after determining the pros and cons of each of the\nbusiness structures, you wish to establish your business in the form of a\ncompany; the next critical question that will arise is how to get a certificate\nof incorporation to form a company? <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/certificate-of-incorporation-meaning-significance-and-legalities\/#What_is_a_certificate_of_incorporation\" >What is a certificate of incorporation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/certificate-of-incorporation-meaning-significance-and-legalities\/#What_is_an_ideal_occasion_to_file_for_incorporation\" >What is an ideal occasion to file for incorporation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/certificate-of-incorporation-meaning-significance-and-legalities\/#Where_should_you_apply_for_a_Certificate_of_Incorporation\" >Where should you apply for a Certificate of Incorporation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/certificate-of-incorporation-meaning-significance-and-legalities\/#An_Overview_of_the_fundamental_structures_of_a_company\" >An Overview of the fundamental structures of a company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/certificate-of-incorporation-meaning-significance-and-legalities\/#Key_Pre-requisites_to_consider_before_application_filing\" >Key\nPre-requisites to consider before application filing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/certificate-of-incorporation-meaning-significance-and-legalities\/#Actual_process_for_securing_a_certificate_of_incorporation\" >Actual\nprocess for securing a certificate of incorporation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/certificate-of-incorporation-meaning-significance-and-legalities\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_certificate_of_incorporation\"><\/span>What is a certificate of incorporation?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A certificate of incorporation refers to a legally enforceable document that affirms the <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>company&#8217;s formation<\/strong><\/a>. Also known as the corporate charter, this document is vitally essential for doing business as a corporation.<\/p>\n\n\n\n<p><strong><em>General information available in the\nCertificate of Incorporation<\/em><\/strong><em><\/em><\/p>\n\n\n\n<ul>\n<li>Corporation&#8217;s\nlegal name<\/li>\n\n\n\n<li>Company&#8217;s\nofficial address<\/li>\n\n\n\n<li>Type\nof corporation<\/li>\n\n\n\n<li>Business\ncode<\/li>\n\n\n\n<li>Business\npurpose<\/li>\n\n\n\n<li>Authorized\nperson&#8217;s name and address<\/li>\n\n\n\n<li>No\nof authorized stock shares<\/li>\n\n\n\n<li>Value\nof stock shares<\/li>\n\n\n\n<li>BODs&#8217;\nnames and addresses<\/li>\n\n\n\n<li>Incorporator&#8217;s\nname and address<\/li>\n\n\n\n<li>Filing\ndate<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_an_ideal_occasion_to_file_for_incorporation\"><\/span>What is an ideal occasion to file for incorporation? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In\nmost scenarios, you can file for incorporation with the authority concerned as\nsoon as you decide to kick-start the business operation as a company. <\/p>\n\n\n\n<p>Before\nmaking such a decision, you may need to identify the pros and cons of filing as\nanother type of business, such as LLP, partnership firm, private limited\ncompany, and so forth. <\/p>\n\n\n\n<p>In\ngeneral, you must file for incorporation before starting the business\nactivities. In most states, businesses require to file such a document before\ninitiating business activities under the company&#8217;s name. In most scenarios, you\nhave to opt for incorporation filing before you can: <\/p>\n\n\n\n<ul>\n<li>Apply\nfor state or city-specific licenses<\/li>\n\n\n\n<li>Hire\nmanpower to work in your facilities <\/li>\n\n\n\n<li>Open\na current bank account<\/li>\n\n\n\n<li>File\ncorporate taxes<\/li>\n<\/ul>\n\n\n\n<p>If\nyou need a certificate of incorporation before engaging with business\nundertakings, make sure to plan ahead. Some states take 24 hours or so to\nprocess the submission, while others may take weeks. Go through your state&#8217;s\ndirections to affirm the average wait time. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Where_should_you_apply_for_a_Certificate_of_Incorporation\"><\/span>Where should you apply for a Certificate of Incorporation?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Knowing whom to confront and where to apply is vital. Just like when you wish to apply for a passport, you immediately get in touch with the concerned passport office; likewise, when you want to apply for a certificate of incorporation, an application is made to the <strong>ROCs, i.e. Registrar of Companies<\/strong><sup><a href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/contact-us\/roc.html\"><strong>[1]<\/strong><\/a><\/sup><strong>.<\/strong><\/p>\n\n\n\n<p>The\nCompanies Act, 2013 is the legislation that regulates incorporated companies.\nThe Ministry of Corporate Affairs is the frontline authority that regulates the\ncompany&#8217;s affairs via the Registrar of Companies (ROC).<\/p>\n\n\n\n<p>All\napplication for a certificate of incorporation is made electronically to the\nROC of the specific state, which is routed via CRC, i.e. Central Registration\nCentre, a dedicated MCA department. <\/p>\n\n\n\n<p>No\ncompany shall stand legally enforceable entity without a certificate of incorporation\ngranted by the ROCs. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"An_Overview_of_the_fundamental_structures_of_a_company\"><\/span>An Overview of the fundamental structures of a company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following are the common business\nstructures available under the Companies Act, 2013, against which a certificate\nof incorporation can be granted; <\/p>\n\n\n\n<ol>\n<li>LLP\ni.e. Limited Liability partnership <\/li>\n\n\n\n<li>Private\nlimited company <\/li>\n\n\n\n<li>One\nPerson Company<\/li>\n\n\n\n<li>Public Limited Company <\/li>\n<\/ol>\n\n\n\n<p>As\nan applicant, comprehending these structures become a very deciding factor not\nonly from the perspective of selecting the right type that offers the best fit\nbut also in w.r.t actual incorporation process of your company. <\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td><\/td><td>\n  <strong><em>Private Limited company<\/em><\/strong>\n  <\/td><td>\n  <strong><em>Public Limited company<\/em><\/strong>\n  <\/td><td>\n  <strong><em>One person company<\/em><\/strong>\n  <\/td><\/tr><tr><td>\n  Minimum Shareholders Required\n  <\/td><td>\n  &nbsp;\n  2\n  &nbsp;\n  <\/td><td>\n  &nbsp;\n  7\n  &nbsp;\n  <\/td><td>\n  Only 1\n  <\/td><\/tr><tr><td>\n  Maximum Shareholders Required\n  <\/td><td>\n  50\n  <\/td><td>\n  Unlimited\n  <\/td><td>\n  Cannot have more than 1\n  <\/td><\/tr><tr><td>\n  Directors Required\n  <\/td><td>\n  Min 2\n  <\/td><td>\n  Min 3\n  <\/td><td>\n  Min 1\n  <\/td><\/tr><tr><td>\n  Capital Required\n  <\/td><td>\n  No Minimum requirement\n  <\/td><td>\n  No Minimum requirement\n  <\/td><td>\n  No minimum requirement\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Pre-requisites_to_consider_before_application_filing\"><\/span>Key\nPre-requisites to consider before application filing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An\napplicant needs to have a DSC in place for all the shareholders, aka subscribers,\nthat will be willing to make an investment in the company. The said individuals\nwould require a class 2 Digital Signature certificate, and it can be secure by\napplying to MCA recognized agencies. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Actual_process_for_securing_a_certificate_of_incorporation\"><\/span>Actual\nprocess for securing a certificate of incorporation <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Upon\nselecting the company&#8217;s type and securing DSC for the concerned shareholders,\nthe next step is to indulge in the actual process of incorporation. The section\nbelow discusses the same in detail<\/p>\n\n\n\n<ul>\n<li>Create an Account on the MCA portal<\/li>\n<\/ul>\n\n\n\n<p>This\nis the very first step in which you have to create a valid account on the MCA&#8217;s\nofficial portal. Account creation is non-chargeable and a straightforward\nprocess.<\/p>\n\n\n\n<ul>\n<li><strong>Apply for a name reservation <\/strong><\/li>\n<\/ul>\n\n\n\n<p>The\nsecond step is the name reservation. You need to use the RUN services available\non the MCA portal. The second way to reserve the company&#8217;s name is to apply\ndirectly via the e-form SPICe+. <\/p>\n\n\n\n<p>While\napplying for a name reservation, you are allowed to propose two different\nnames. While doing so, make sure that the proposed names are free from any\ntrademark-related issues. The authority may take around three weeks to approve\nthe submitted name. <\/p>\n\n\n\n<ul>\n<li><strong> Filing of Incorporation forms <\/strong><\/li>\n<\/ul>\n\n\n\n<p>Use\nthe following e-forms for filling out the application for a certificate of\nincorporation. These forms shall be prompted during the incorporation process\non the MCA portal. <\/p>\n\n\n\n<ul>\n<li><strong><em>Fillip\nForm: LLP incorporation <\/em><\/strong><\/li>\n\n\n\n<li><strong><em>SPICe+\nform: For incorporating Private Limited Company and OPC <\/em><\/strong><\/li>\n<\/ul>\n\n\n\n<p><strong><em>Documents\nto be attached while applying for a certificate of incorporation via Spice+\nform; <\/em><\/strong><\/p>\n\n\n\n<p>1)\nDeclaration in form called INC-9 from all the shareholders\/subscribers<\/p>\n\n\n\n<p>2)\nConsent from serving directors in form called DIR-2 <\/p>\n\n\n\n<p>3)\nProof of registered office such as phone bill, electricity bill, gas bill,\nalong with a NOC from the premises&#8217; owner <\/p>\n\n\n\n<p>4)\nSubscribers and director&#8217;s identification proof (Passport\/DL\/PAN)<\/p>\n\n\n\n<p>5)\nSubscribers and Directors&#8217; address proof (utility bill\/bank statement)<\/p>\n\n\n\n<p>6)\nA declaration issued by a practising CA or cost accountant <\/p>\n\n\n\n<ul>\n<li><strong>Application and document vetting and grant of certificate of incorporation<\/strong><\/li>\n<\/ul>\n\n\n\n<p>After\nforms are filed with the Ministry of Corporate Affairs and the prescribed fee\nis paid, the registrar shall vet your forms and documentation for authenticity.\nThe certificate of incorporation shall be granted if ROC fails to locate any\nissue with the application form, <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Certification of incorporation makes your business legally enforceable in the eye of regulatory authorities. One has to meet specific legal requirements for incorporating their business set up under the governing legislation. The drafting of MOA and AOA is a crucial requirement for serving such a purpose. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/section-13-of-companies-act-2013\/\">Section 13 of Companies Act, 2013: Explained\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>For commencing any type of business in India, it is vitally imperative to give that legal business status. In our country, there are arrays of legal structures such as Partnership firm, sole proprietorship, LLP, Partnership, Private limited company, etc., available to select from, and determination of the form of business structure is one of the [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":42621,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[2295],"acf":{"service_id":"1"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":14271,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/42617"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=42617"}],"version-history":[{"count":11,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/42617\/revisions"}],"predecessor-version":[{"id":63872,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/42617\/revisions\/63872"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/42621"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=42617"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=42617"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=42617"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}