Incorporation certificate is the final stage of company formation. This certificate has been issued by the Registrar of Companies after the entire process of company registration has been completed. This works as a proof of company registration. To obtain this certificate one needs to submit both Spice+PartA and Spice+Part B forms. The entire information submitted through these forms must be true because wrong information can result in rejection of your application. Without completing the registration process one cannot get this certification. Incorporation certificate of the company consists of general information of the company which includes name of the company and address of the company. To know more about this continue reading the present blog.
Meaning of an Incorporation Certificate
A formal document which is the legal evidence regarding the official registration of the company with the registrar of the companies is called incorporation certificate of the company. It is also known as CIN, that is Company Incorporation Certificate. It contains the following information:
- Official name of the company
- Business address proof of the company
- Date of establishment of the company
- Summary of operation of the company
- Information regarding the authorized capital of the company
Importance of an Incorporation Certificate
There are certain important aspects of this certificate of incorporation of the company due to which it is necessary to take this certificate. Some of them are mentioned below:
- CIN is the legal document of the company’s existence
- It is a legal document that works as the identity proof of the company
- As company is having separate legal identity, Ministry of Corporate Affairs issue CIN on the name of the company that works as a entity’s unique identifier
- While opening the bank account for the company this certificate of incorporation is needed
- While distributing shares for the investors incorporation certificate is required
- If one wants to obtain the loan for the business then this certificate is must
- In case the owner of the company wants to sell the business to a third party, Certificate of Incorporation is required at that time as well.
Which Companies Need Certificate of Incorporation?
All the companies which got registered under the Companies Act of 2013 need this certificate of incorporation. These companies include Private Limited Company registration, One Person Company, Public Limited Company registration, section 8 company etc. one more entity which needs to get this certificate of incorporation is Limited Liability Partnership Firm. Although it is not registered under Companies Act of 2013, CIN is applicable on these entities. This is because they are also registered by the registrar of companies. Only difference is that they are governed by the LLP Act of 2008.
Process to get Company Incorporation Certificate
The process to get the incorporation certificate for any type of company once it complete the formalities to obtain the same are mentioned below:
Primary Stage
- First, decide on the type of business you want to start.
- Choose a unique name for your company that aligns with the guidelines specified by the Ministry of Corporate Affairs (MCA).
- Ensure the chosen name is available and does not infringe on any existing trademarks or rules outlined by MCA.
- Use the RUN (Reserve Unique Name) web service or SPICe+ (Simplified Proforma for Incorporating Company Electronically) to check and reserve the name.
Secondary Stage
- Gather necessary documents like identity proofs, address proofs, and photographs of directors or promoters.
- Draft the Memorandum of Association (MOA) and Articles of Association (AOA) defining the company’s objectives and internal regulations.
- Obtain Digital Signature Certificates (DSC) for the directors and obtain Director Identification Numbers (DIN) for each director
- Fill the SPICe+ form, providing company details, authorized capital, registered office address, and information about directors, shareholders, and company secretaries.
- Upload the SPICe+ form along with required documents and the prescribed fee on the MCA portal.
- Get the form digitally signed by all directors and stakeholders.
- The MCA will review the application, verify the provided information, and carry out background checks.
- If there are no discrepancies, the Registrar of Companies (RoC) will approve the application.
Final Stage
After the completion of the primary and secondary stages, Certificate of Incorporation can be obtained by the entity. Once the application is verified and everything finds up to the mark as per the rules and regulations of the Companies Act of 2013, registration of the company will be approved. After approval, the registrar of companies will issue a incorporation certificate which works as a proof of company registration.
List of Documents Required to Obtain CIN of a Company
In order to get the incorporation certificate one must have certain documents which are necessary. These documents include but are not exhausted to the personal documents of the key persons of the company, business address proof of the company, MOA, AOA, DSC,DIN, one recent passport size photograph of the key persons of the company and a recent bank statement of the key persons of the company. Without having the proper documents one cannot even complete the primary and secondary stages towards obtaining the incorporation certificate. Hence before starting the process to obtain the Certificate of Incorporation, one must first collect all the documents which will be required to complete the process of obtaining Certificate of Incorporation.
Conclusion
The incorporation certificate is like a company’s official birth certificate in India, proving its legal existence. It includes crucial details like the company’s name, establishment date, and business address. This incorporation certificate is essential for various tasks such as opening a bank account, getting loans, or selling the business. All companies registered under the Companies Act of 2013 need this certificate, and the process involves steps like picking a unique name, gathering documents, defining the company’s objectives, obtaining digital signatures for directors, and submitting the necessary forms. Once approved by the Registrar of Companies, the company receives its incorporation certificate, marking its official registration and compliance with legal requirements.
