Formation of a Company
Registering a Company with the Register of Companies is known as a formation of a company. As a result, the business becomes a distinct legal entity. The process is also referred to as ‘company incorporation’ and ‘company registration’. When you incorporate a limited company, it becomes an individual ‘person’ in the eyes of the law. Incorporated businesses are completely separate from their owners in terms of finances, liabilities, contractual agreements, and ownership of property and assets. Such a view is not afforded to unincorporated businesses like sole traders as distinct legal entities.
Advantages of Forming a Company:
- Limited Liability
- Separate entity from promoters [owner]
- Professional corporate image
- Reduced financial responsibility
- Limited status gives the impression of an established and reliable business. As a result, incorporated businesses are more attractive to investors, lenders, clients and suppliers.
Documents Required for Incorporating a Company:
- Promoters KYC [ Aadhar, Pan, Driving license, Voter id, Bank Statement etc ]
- DSC of all Directors
- Share capital [Decided by promoters]
- Rental/Sale/Lease deed of Registered office Address
- MOA, AOA