Company Incorporation means making Company a legal person in the eyes of Law or the process of making own identity of the company.
Incorporation simply means giving Birth to a Company or bringing the Company into existence. However, in order to incorporate a company, we need to fulfill various legal compliances.
Why incorporating a Company is necessary?
- To wave off ourselves from any outstanding liability.
- To Establish Perpetual Existence and Transfer of Ownership.
- To Gain Tax Advantage.
- Enhance the Company’s brand value.
- Improve the ability to manage the Business.
Types of companies that can be incorporated are;-
- Public Limited Company A public company means a Company other than a private company. A public company is a company that is owned and regulated by the public. It requires 7 or more persons to form a public Company in India. A company that is a subsidiary of a public company, not being a private company, shall be deemed to be a public company even when such subsidiary company continues to be a private company in its Articles of Association.
- Private company A private company is a closely held one and at least 2 or more persons are required to form a private company. A private company is not traded publicly i.e. a private company cannot come out with a public offer. A private company also restricts the right to transfer its shares and except in one Person Company, limits the number of members to 200.
- One Person Company There can be only one, natural person who is a resident of India who can be the member of OPC. As the name itself suggests it is a company that is owned by one single person.
- Section 8 Company: The Companies Act defines a Section 8 company as one whose objectives are to promote fields of arts, commerce, science, research, education, sports, charity, social welfare, religion, environment protection, or other similar objectives. These companies also apply their profits towards the furtherance of their cause and do not pay any dividend to their members.
- Producer Company “Producer Company” means a body corporate having objects or activities specified in section 581B and registered as Producer Company under the Companies Act, 1956.
(a) Production, harvesting, processing, procurement, grading, pooling, handling, marketing, selling, export of *primary produce of the Members or import of goods or services for their
(b) Rendering technical services, consultancy services, training, education, research and development, and all other activities for the promotion of the interests of its Members;
(c) Generation, transmission and distribution of power, revitalization of land and water resources, their use, conservation, and communications relatable to primary produce;
(d) Promoting mutual assistance, welfare measures, financial services, insurance of producers or their primary produce;
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