Question

Justify the following statements.
1) Certificate of Incorporation is like a Birth Certificate of a company
2) Every Company on incorporation gets a CIN
3) Promoters play an important role in formation of a company.
Q.6 Answer the following questions:
1) Explain briefly the steps involved in incorporation of a company
2) Promoters play an important role in formation of a company. - Explain​

Answer 1

The certificate of incorporation  gives a well account about when a company is born, ie date, day and important details.

After this is done, the company needs to have some name. After this, the next step is developing a memorandum of association followed further by Article of associations.

These processes take the documentation process further. After this, the documents are made official by stamp and sign process. This is further proceeded to the next step when vetting of memorandum takes place.

After this, the managing director or done other person as to be a part of power of attorney and the whole document is filed for registration.

Thereby a CIN number is given and promoters further help by helping to set up and run the company.

Answer 2

Explanation:

Q2.

1) CIN number issued by Registrar of the company at the time of incorporation of a company.

2) This indicates whether a company is listed or unlisted.

3) This number also indicates industry code state of its location, year of incorporation, ownership type and registration number.

4) CIN is a 21 digit alpha numeric code a d it is to be quoted in every correspondence that the company uses.

Therefore every company on in cooperation gets a CIN.