What is company in India?
In corporate accounting , commerce students have to learn accounting treatment of issue of share capital , debenture and its redemption , bonus and right issue at graduation level . They also have to solve the problems of final accounts of different companies .
For proper accounting treatment , learning of Indian Company Law 1956 is must . So , this topic is being discussed here. If you are starting to learn Company or Corporate Accounting , then this article will be useful for you because after reading this article , you will understand , the brief history , meaning , definition of Company and its six features .
First of All, in France this word was used for body of soldiers see [Fr. Term Accompanied].. After year 1500, this word became famous in business. Group of businessmen was called company.
I can explain the meaning of company with a simple example. Suppose, two persons want to do business at large scale but they have limited money. They are also not interested to make partnership due to its unlimited liability. They go to the office of registrar of companies and fill the form of creation of company and attaching required documents. They also pay the required fees. After this, registrar will register their company. This registered company will be independent Identity.
Definition of Company
Indian Company law 1956's section 3(1) (i) define company, "Company is the Organization which is formed and registered under this law or any previous law"
Explanation of Company
From above example and definition, we can understand that company is voluntary and autonomous association of persons. This is made for achieving business objectives. It acts like human being. Company can purchase assets or sell it. It can take also debt. It can open bank account. It is fully free from its members. Company is operated through board of directors.
Company Registration Doc's
List of documents required for Company Incorporation in India
Details of at-least two Directors / Promoters of the company for obtaining DIN (Director's Identifications Number)
- Complete Name
- Address (including City, State, Pin Code, Country)
- Father's Name
- Date of Birth
- Photograph of every proposed Director. (Scanned photograph will do)
- Copy of Passport as a proof of identity and copy of Electricity Bill / Telephone Bill / Bank Statement / Driving License as a proof of address. (Scanned copy will do)
Thereafter a provisional DIN would be obtained from the Ministry of Company Affairs and a copy would be send for obtaining signature of the applicant. In case of foreign residents the documents i.e. DIN Form, Proof of Identity and Proof of Residence have to be attested by notary of the home country. Details of proposed company to be incorporated THREE Proposed names of the company in order of preference. Main objects of the proposed company.