Company IncorporationChennai

What is Company Incorporation

• Company Incorporation is a legal process to form the corporate entity.

• The people with good knowledge and business ideas can come together and start a company.

• Certainly people need to know about marketing the business because in this competitive world, business tactic are important since it is running a company.

• Such company must be registered for having the goodwill for the company itself in the society.

The companies act was introduced in the year 1956. Based on proposed revisions of the companies’ act 1956, present committee

was formed on 2nd December 2004. The present Companies act 2013 speaks about the law covering incorporation, dissolution and the running of the companies.

C Corporation vs S Corporation

C Corp• It is similar to Private

Limited Company• Should Pay tax along with

income• There is no limit for number

of the owners.

S Corp• It is similar to Limited

Liability Company• No need to pay tax, but they

have to report the company revenue as income

• There is a limit for the number of owners.

Types of Corporate Structure

• Functional• Divisional• Matrix• Hybrid

Functional - The same department employees are grouped when they have equal skill, so that the employees can communicate effectively

Divisional - There are many work teams, which can provide efficiency

Matrix structure provides the combination of both functional and divisional. In this form of structure, there is freedom for decision making

Hybrid structure is greatly adopted by many organisations

Incorporation Process

• First step is to make sure that the name is available or not.

• Secondly the article of association and memorandum of association should be prepared.

• Documents like e- Form No.32, e-Form No 18 and e-Form No 1 have to be submitted.

• All such documents will be signed, stamped and provided with legal terms by the attorney. On payment of the fees, Registration of Certificate (ROC) is given.

Significance of Incorporation

• The shares can be transferred, succession is perpetual and it is treated as separate legal entity.

• There is greater flexibility and it has greater independence to form the policies

• It is easy to raise the capital and the loans can be got so easily.

• To sustain in the competitive market field, the incorporation of the company is important.

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