CA Intermediate Exam > CA Intermediate Videos > Crash Course for CA Intermediate > Incorporation of Company and Matters - 4
Incorporation of Company and Matters - 4 Video Lecture | Crash Course for CA Intermediate
FAQs on Incorporation of Company and Matters - 4 Video Lecture - Crash Course for CA Intermediate
| 1. What is the process of incorporating a company? |  |
Ans. The process of incorporating a company generally involves several key steps: first, choosing a suitable name for the company that complies with legal requirements; second, drafting the Memorandum of Association and Articles of Association, which outline the company's structure and rules; third, filing the necessary documents with the relevant government authority; fourth, paying the requisite fees; and finally, obtaining a Certificate of Incorporation, which signifies that the company is officially registered and can commence operations.
| 2. What are the different types of companies that can be incorporated? | |
Ans. Companies can be incorporated as different types based on their structure and purpose. The most common types include private limited companies, public limited companies, and one-person companies. Private limited companies have restrictions on the transfer of shares and a limited number of shareholders, while public limited companies can offer shares to the public and have a larger shareholder base. One-person companies are owned by a single individual but maintain limited liability status.
| 3. What are the legal documents required for company incorporation? | |
Ans. The legal documents required for company incorporation typically include the Memorandum of Association, which states the company's name, objectives, and authorized share capital; the Articles of Association, which outlines the rules governing the company's internal management; and forms that need to be filed with the relevant authority, such as the incorporation form and a declaration of compliance. Additional documents may include identity proofs and address proofs of the directors and shareholders.
| 4. What is the significance of the Certificate of Incorporation? | |
Ans. The Certificate of Incorporation is a crucial document as it serves as legal proof that a company has been officially registered under the law. It grants the company separate legal identity from its owners, allowing it to enter into contracts, own property, incur debts, and sue or be sued in its own name. Moreover, it signifies that the company has met all regulatory requirements set forth by the governing authority.
| 5. What are the responsibilities of directors in a newly incorporated company? | |
Ans. Directors of a newly incorporated company have several key responsibilities, including ensuring compliance with statutory requirements, managing the company's affairs in the best interest of shareholders, maintaining accurate financial records, and conducting meetings as per legal guidelines. They must also act in good faith, avoid conflicts of interest, and ensure that the company adheres to its Memorandum and Articles of Association. Failure to fulfill these duties can lead to legal consequences for the directors.
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