What is Certificate Of Incorporation?

CERTIFICATE OF INCORPORATION OF A COMPANY UNDER COMPANIES ACT 2013 AS PER LATEST GUIDELINES OF MINISTRY OF CORPORATE AFFAIRS

A lot has changed in the world but majority changes have been seen in Company law and the process of incorporation. Before starting with the process of incorporation of company here are some basic advantages and factors to look out for to understand the benefits of it as per one‟s requirements:

Need for Incorporating a Company:

 Independent corporate existence: By registration under the Companies Act, a company becomes vested with corporate personality, which is independent of, and distinct from its members.

 Limited liability- The Company, being a separate entity, leading its own business life, the members are not liable for its debts. The liability of members is limited by shares; each member is bound to pay the nominal value of shares held by them and his liability ends there.

 Perpetual succession- An incorporated company never dies. Members may come and go, but the company will go on forever.

 Common seal- Since a company has no physical existence, it must act through its agents and all such contracts entered into by such agents must be under the seal of the company. The common seal acts as the official seal of the company.

 A company can sue and be sued in its own name. The names of managerial members need not be impleaded.

 Many tax exemptions available to the company set up in Special Economic Zone.

 Many tax incentives available to IT companies.

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