The Companies Act, 2013 details the regulations and company registration papers essential for the incorporation of a company. In this article, we will understand all such rules and documents listed in the Act. To begin with, let’s define the promoters of a company.
Section 2(69) of the Companies Act, 2013, defines promoters as an individual:-
· Is named as promoter in the brochure or in the annual returns of the company.
· Who Controls the affairs of a company, directly or indirectly.
· Advises or instructs the Board of Directors.
Hence, promoters are people who originally come up with the idea of the company formation and registering it. However, lawyers, accountants, etc. are not promoters of the company.
Formation of a Company
Section 3 of the Companies Act, 2013, details the basic requirements of forming a company as follows:
· Formation of a public company involves 7 or more people who subscribe their names to the memorandum and register the company for any lawful purpose.
· Similarly, 2 or more people can form a private company.
· One person can form a One-person company.
Issuing the Certificate of Incorporation
Once the Registrar receives the information and company registration papers, he registers all information and documents and issues a Certificate of Incorporation in the prescribed form.
Corporate Identity Number (CIN)
The Registrar also allocates a Corporate Identity Number (CIN) to the company which is a distinct identity for the company. The allotment of CIN is on and from the company’s incorporation date. The certificate carries this date.
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