Page 3 - Lesson Note 8

6. Preparation of necessary documents: The promoter takes up steps to prepare certain legal
documents, which have to be submitted under the law, to the Registrar of the Companies for getting the
company registered. These documents are Memorandum of Association, Articles of Association and
Consent of Directors.

2. Incorporationhttps://www.youtube.com/watch?v=2-8qDqH5CC0

Incorporation means registration of the company as body corporate under the companies Act 1956 and
receiving certificate of Incorporation.

Steps for Incorporation

1. Application for incorporation: Promoters make an application for the incorporation of the company to
the Registrar of companies.

2. Filing of necessary documents: Promoters files the following documents:

(i) Memorandum of Association.

(ii) Articles of Association.

(iii) Statement of Authorized Capital

(iv) Consent of proposed director.

(v) Agreement with proposed managing director.

(vi) Statutory declaration.

3. Payment of fees: Along with filing of above documents, registration fee has to be deposited which
depends on amount of the authorized capital.

4. Registration: The Registrar verifies the entire document submitted. If he is satisfied then he enters the
name of the company in his Register.

5. Certificate of Incorporation: After entering the name of the company in the register. The Registrar
issues a Certificate of Incorporation. This is called the birth certificate of the company.

III. Capital Subscription:https://www.youtube.com/watch?v=B1_IMvLSAp4

The following steps are required for raising funds from the public:

1. SEBI Approval: SEBI (Securities and Exchange Board of India) which is the regulatory authority in our
country has issued guidelines for the disclosure of information and investor protection. A public