Company Incorporation Quiz

Company Formation Essentials

• A minimum of 7 persons are required to form a public company.

Pre-Incorporation Contracts

• Preliminary Contracts refer to contracts entered into by the promoters on behalf of a company before its incorporation.
• These contracts are distinguished by being entered into prior to the company's incorporation.

Director Identification

• Each director of a company is assigned a unique 21-digit alphanumeric code, known as the Director Identification Number (DIN).

Inviting Public Investment

• A Prospectus is a document that invites the public to buy shares of a company.

Commencement of Business

• The Certificate of Commencement of Business is a crucial document that signifies a company's readiness to commence business operations.

Role of Practicing Company Secretary

• Appointing a Practicing Company Secretary, like Mr. Shah, is crucial for company incorporation, as they ensure compliance with legal requirements and guide the incorporation process.

Incorporation Process

• The SPICE (Simplified Proforma for Incorporating Company Electronically) form is essential for the incorporation of a company, as it facilitates the submission of required documents and information.

Promoters' Role

• Promoters play a vital role in the process of incorporating a company, as they are responsible for preparing and filing the necessary documents, obtaining necessary approvals, and completing the incorporation process.

Promotion and Company Formation

• The term 'Promotion' in the context of company formation refers to the entire process of incorporating a company, from conceptualization to the issue of the Certificate of Incorporation.

Certificate of Incorporation

• The Certificate of Incorporation is a document issued by the Registrar of Companies, certifying that a company has been incorporated and is legally recognized.
• This certificate is crucial, as it marks the birth of a new company and provides proof of its existence.