Tuesday, March 6, 2012

When is a company is said to be born?

Ans.: The Companies Act, 1956, provides for registration of companies. Persons interested in forming a company need to submit a memorandum of association (MOA) and articles of association (AOA) of the proposed company to the Registrar of Companies. A company is ‘born’ when the Registrar issues the certificate of incorporation.

Before incorporation, the interested persons would need to settle on the type of company they wish to form. The Companies Act makes it possible to incorporate different kinds of companies.

Some companies companies are created by Statutes (Acts), these are called statutory companies. Examples of statutory companies are Unit Trust of India and State Bank of India. In contrast to the statutory companies are the companies registered under the Companies Act.

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