Company Registration

Company Registration/Incorporation

Company is a voluntary association of persons formed for the purpose of doing business having a distinct name and limited liability.

It is a juristic person having a separate legal entity distinct from the members who constitute it, capable of rights and duties of its own and endowed with the potential of perpetual succession.

The Companies Act, 1956, states that 'company' includes company formed and registered under the Act or an existing company i.e. a company formed or registered under any of the previous company laws.

However, company is not a citizen so as to claim fundamental rights granted to citizens.

Company is separate legal entity distinct from its shareholders. The major constituents of a company are its members, who are the ultimate owners and its directors.

It is an important feature of the company form of business, that there is a gap between the ownership and control over the affairs of the company.

In real sense the members are the owners of a company, but it is being managed by the directors who are elected representatives of its members, because it is absolutely necessary for it to have a human agency called as the Company's board of directors. The Board of Directors comprises the directors.

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