Corporate Organization Chapter 7

The foundational document of a company, outlining its fundamental purposes and structure.

Rules governing the company's internal management, subsidiary to the MOA.

A clause in the MOA that limits the financial responsibility of company members to the money they haven't yet paid on their shares.

Outlines the maximum capital a company is permitted to accumulate through share issuance.

A company structure where shareholders' liability is limited to the unpaid portion of their shares.

A company structure where members agree to contribute a predetermined amount if the company faces financial difficulties.

Company structure where members' liability isn't limited and extends to the company's potential debts.

The total amount of money raised by a company by selling shares.

A document issued by the Registrar of Companies, signifying the legal existence of a company.

The formal status granted to a company by the Certificate of Incorporation, allowing it to enter into contracts and operate legally.

A unique identifier allocated to a company by the Registrar of Companies for registration after November 1, 2000.

The date printed on the Certificate of Incorporation, marking the company's legal formation.

Irrefutable proof of the company's valid incorporation, irrespective of any potential flaws.

The time the Certificate of Incorporation is issued which also marks the beginning of its legal existence.

Contracts signed by a legally incorporated company, on or after the date of incorporation, are considered valid, irrespective of the flaws in the initial documents.

The authority that manages company registration and issues incorporation certificates.

A company structure where a single individual owns and controls the entire entity, offering benefits like limited liability and perpetual succession.

A person designated to represent the sole member of a One Person Company. They are responsible for fulfilling the obligations and exercising the rights of the sole member.

An individual who has resided in India for at least 182 days in the preceding calendar year, fulfilling a requirement for being a nominee and sole member of an OPC.

Only Indian citizens residing in India can incorporate an OPC. Each person can only form one OPC and act as a nominee in only one OPC.

OPC's cannot be incorporated under Section 8 of the Companies Act. They cannot engage in Non-Banking Financial Investment activities. Minors cannot be members or nominees.

An OPC can only be converted into another company type after two years from its incorporation unless it meets certain conditions like increased share capital or annual turnover.

An OPC can convert sooner than two years if its paid-up share capital surpasses INR 50 lakhs or its average annual turnover exceeds INR 2 crores.

An OPC can continue to exist even after the sole member passes away, ensuring the business doesn't dissolve.

A company structure where the financial responsibility of its members (shareholders) is limited to the amount of money they haven't yet paid for their shares. This means they are not personally liable for the company's debts beyond their investment.

The official address of a company, as listed in its documents, where legal notices and official communications are sent. This address is critical for maintaining legal compliance and ensuring company operations are legitimate.

These define the specific aims, purposes, and activities the company intends to pursue. They act as a roadmap for the company's business and should be clearly documented in the Memorandum of Association.

These individuals are the initial founders of the company who agree to take a specific number of shares in the company. They play a key role in establishing the company's existence.

The MOA requires signatures of both the subscribers and witnesses to validate the document legally. It ensures the authenticity and commitment of the founders.

The process of legally establishing a company. It involves drafting essential documents, such as the MOA and AOA, and obtaining the required registration from the relevant authorities. This process formally establishes the company's legal identity and empowers it to operate within the legal framework.

A legal document containing information about a company's financial health and plans for fundraising through share issuance, used to attract investors.

This certificate, issued by the Registrar of Companies, marks the official birth of a company, granting it legal existence, allowing it to operate and enter into contracts.

It's a document defining a company's purpose and structure. It's like the company's constitution.

These are the people who start a company and agree to buy some of its shares.

They are there to see that subscribers are signing the MOA, confirming it's real.

These are the marks on the MOA that make it legally valid.

For an OPC, the sole member and nominee must have lived in India for 182 days in a year.