Incorporation

Incorporation is the legal registration of the company. The promoters apply to the Registrar of Companies of the state where the registered office will be, together with the documents and the fees.

The Registrar checks that the documents are in order and that the legal requirements have been met. The Registrar does not investigate whether every statement in them is true.

When satisfied, the Registrar issues the Certificate of Incorporation, often called the company's birth certificate. It is conclusive evidence that the company exists: once it is issued, the company's legal birth cannot be questioned. The company is given a Corporate Identity Number (CIN).

What about contracts the promoters made before the company was formed? These preliminary contracts do not bind the company, because it did not exist when they were signed: a company cannot be bound by what was done before it was born. The promoters remain personally liable for them, unless the company makes a fresh contract after incorporation.

Every director of a company also needs a Director Identification Number (DIN), which is allotted within one month of applying.