The Need for a Legal Business Personality
In a country of 1.35 billion potential clients, legitimacy to do business is a must for serious entrepreneurs wanting unhampered profit flow.
India’s Ministry of Corporate Affairs, the government-designated implementing agency of the company laws, sees to it that entrepreneurs are made to comply with stiff requirements.Only then, they could secure a Certificate of Incorporation.
MCA Information Access Online
MCA, which governs concerns of the rapidly growing business sector, maintains a website where entrepreneurs can access information related to a wide array of doing business in India. However, not even its built-in pages seemed enough to address many questions.
As such, MCA has made sure its website is equipped with a tab directly answering frequently asked questions.
What is a Certificate of Incorporation?
Among the frequently asked questions pitched in online include definition of government regulation terms.
Questions, mostly from start-ups include — What is a Certificate of Incorporation?
MCA’s answer — A Certificate of Incorporation or Letter of Incorporation is a proof that a company has been duly registered with the Registrar of Companies.
Web sources define a certificate of Incorporation as:
- A legal document that MCA issues upon request by a company. However, such certificates would only be secured after successful registration with the agency.
- A license to form a company, issued by the state government.
Compliance before Issuance
Before MCA issues a Certificate of Incorporation, entrepreneurs are required to comply with the following pre-requisites in the incorporation of a company in India:
- Application for Director Identification Number and Digital signature Certificate
- Applying for availability of the name selected
- Draft of Memorandum of Association and Article of Association
- E-forms with Registrar of companies
- Payment of fees and stamps for Registrar of Companies
- Clearance from the Register of Companies which verifies authenticity and truthfulness of documents and forms
On then will the company would be issued a Certificate of Incorporation
What’s in the Certificate of Incorporation?
A Certificate of Incorporation basically provides validity and legal personality to do business to the company. It is also proof that the company exists.
- Certificate of Incorporation’s distinct attributes include:
- Name and abbreviation of the corporation
- Business Purpose Statement
- Registered office address
- Company Registration Agent for the address
- Number of the shares of stock authorized to be issued
- Description of the different types of stocks which may be issued by the Company in the event that there are more than one type
- Name and address of the incorporated company
Certificate of incorporation is divided into different articles. Interestingly, there are many other things in a Certificate of Incorporation that serious entrepreneurs should know.
We at 3E Accounting India just might be what you need – an India business service provider, with a proven track record of excellence. Our Efficiency, Effectiveness and Economy is in itself a guarantee of results, or your money back.