Question

Explain how the Registrar of Companies issues the certificate of incorporation to the company after the company has finished all the procedures and furnished all the documents.

Answer 1

• The company needs to submit all the documents as required by the provision of law at the office of Registrar of Companies.
• The Registrar office investigates all the documents. If it finds all the documents proper, it records the name of the company in the book of companies.
• The registrar then issues ‘a certificate of incorporation’. The date mentioned in the certificate of incorporation becomes the date of foundation of the company.
• The Registrar of companies also issues Corporate Identification Number (CIN) to the company. The CIN works as a unique identification code for the companies. The CIN is mentioned on the certificate of incorporation.
• The company needs to preserve all the original documents and statement of information at its registered office as long as the company exists.
• Once this procedure is over the private company can immediately start the business. In case of a public company, it can allot the shares after fulfilling the condition of minimum subscription by issuing a prospectus.