Explain the steps to be taken for incorporation of a company

CBSE Class 11 CBSE Class 11 Business Studies
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1

Explain the steps to be taken for incorporation of a company.
Or
Explain the process of formation of a private company.
Or
What do you mean by ‘incorporation of a company’. Explain its procedure.
Or
Ahaan is interested in floating a company. Discuss the steps he should take in doing so.

2

‘Incorporation of a company’ means to register the company under the provisions of the Companies Act, 1956.
Steps to be followed for the registration of a company are as follows :

  1. Application for registration : An application in the prescribed format, duly signed by all the partners is to be submitted to the registrar of companies, containing the following information :
    (i) Name of the company.
    (ii) Location of the company.
    (iii) Memorandum of association.
    (iv) Articles of association.
    (v) Written consent of directors.
    (vi) Names and addresses of the directors.
    (vii) Statutory declaration announcing that all the information is true and all the requirements of the act have been duly fulfilled.
  2. Fees : Required amount of fees is to be deposited with the registrar of companies.
  3. Issuance of certificate : When the registrar is
    satisfied with all the formalities, he enters the company’s name in the register and issues a certificate of registration.