Company Formation Quiz

The process of formation and incorporation of a private limited company involves the following steps: 1. Obtain Director Identification Number (DIN) for all proposed directors. 2. Obtain Digital Signature Certificate (DSC) for all proposed directors. 3. Choose a unique name for the company and get it approved by the Registrar of Companies (ROC). 4. Prepare and file the necessary documents, including the Memorandum of Association (MOA) and Articles of Association (AOA), with the ROC. 5. Pay the registration fees and stamp duty. 6. Obtain the Certificate of Incorporation from the ROC.

A One Person Company (OPC) is a type of company that can be formed with just one person as its member. It provides a separate legal entity and limited liability to the single owner. To form an OPC, the following requirements must be met: 1. The company must have only one shareholder. 2. The shareholder must be a natural person who is an Indian citizen and resident in India. 3. The shareholder must appoint a nominee who will become the member in case of death or incapacity of the original shareholder. 4. The company must have a unique name and obtain approval from the ROC. 5. The necessary documents, including the MOA and AOA, must be prepared and filed with the ROC. 6. The registration fees and stamp duty must be paid. 7. The Certificate of Incorporation will be issued by the ROC.

A Section 8 Company, also known as a Not for Profit Organization, is a company formed for promoting art, science, commerce, charity, religion, etc., and intends to apply its profits, if any, for promoting its objectives. To form a Section 8 Company, the following requirements must be met: 1. The company must have a minimum of two shareholders. 2. The company must have a unique name and obtain approval from the ROC. 3. The necessary documents, including the MOA and AOA, must be prepared and filed with the ROC. 4. The registration fees and stamp duty must be paid. 5. The company must satisfy the conditions specified in Section 8 of the Companies Act, 2013. 6. The Certificate of Incorporation will be issued by the ROC.

The Memorandum of Association (MOA) and Articles of Association (AOA) are important documents required in the formation of a company. The MOA sets out the fundamental objectives and scope of activities of the company, while the AOA contains the rules and regulations governing the internal management of the company. These documents provide clarity and certainty to the shareholders, directors, and other stakeholders regarding the purpose, powers, and procedures of the company. They also serve as a legal basis for the company's actions and protect the interests of its members and creditors.

The registration of a company has several effects, including: 1. Creation of a separate legal entity: Upon registration, the company becomes a distinct legal entity separate from its shareholders. It can own property, enter into contracts, and sue or be sued in its own name. 2. Limited liability: The liability of the shareholders is limited to the amount unpaid on their shares. Their personal assets are not at risk in case of company debts. 3. Perpetual succession: The company continues to exist even if its members change or pass away. It has perpetual succession, which means it can carry on its activities indefinitely. 4. Capacity to enter into contracts: A registered company has the capacity to enter into contracts and can be held legally bound by them. 5. Credibility and trust: Registration enhances the credibility and trustworthiness of the company in the eyes of customers, suppliers, lenders, and other stakeholders.

a. Inventory control

a. limitations

c. Historical

c. Prime cost

a. Prime costs+ other manufacturing