Company formation for setting up new business is the most acceptable business form world-wide. The potential of growing business to highest level is possible in corporate form only.

A company comes into existence is generally by a process referred to as incorporation. Once a company has been legally incorporated, it becomes a distinct entity from those who invest their capital and labour to run the company. Usually the first step to form a company is the process known as ‘promotion’ where a person persuades others to contribute capital to a proposed company before it is incorporated . Such a person is called the promoter of the company. Promoters also can enter into a contract on behalf of a company before or after it has been granted a certificate of incorporation, and arrange share issues in the name of the company. Section 3 to 22 of the Companies Act, 2013 (herein after called the Act) read with Companies (Incorporation) Rules, 2014 made under Chapter II of the Act (herein after called ‘the Rules’) cover the provisions with regard to incorporation of companies and matters incidental thereto.

Features of Company

Liability of shareholders are limited to their subscription or guarantee

Company has separate legal existence in the eyes of Law. It can sue & be sued in its own name.

Company never dies on death of its shareholder or director

Shareholder are owner of the company but Directors can be separate from shareholders who manages day to day affairs of the company.

Company can buy, own and sell any assets including property in its own name.

Types of Company

One Person Company

Members: 1

Directors: 1

Private Limited Company

Members: 2-200

Directors: 2-15

Public Limited Company

Members: 7-unlimited

Directors: 3-15

Producer Company

Members: 10-unlimited

Directors: 5-15

Company Incorporation steps

Want to Register a Company at affordable cost? Gupta Chandan & Associates is the best option!