Section 7 of CA 2013 : Section 7: Incorporation Of Company

Explanation using Example

Imagine an entrepreneur, Alice, who wants to start a software development company named "Tech Innovations Pvt. Ltd." To legally establish her company in India, she needs to register it under the Companies Act, 2013. Following Section 7 of the Act, Alice must submit the following documents to the Registrar of Companies:

• The memorandum and articles of association for "Tech Innovations Pvt. Ltd.", signed by all the initial shareholders.
• A declaration by a chartered accountant who has helped in forming the company, and by Alice, who will be the managing director, confirming that all legal requirements for registration have been met.
• A personal declaration from Alice and the other first directors stating they have not been involved in any illegal activities related to company management in the last five years.
• A temporary correspondence address until the company's registered office is set up.
• Personal details of each shareholder, including proof of identity, and in case a shareholder is another company, the relevant information for that company.
• Details of the first directors, including their Director Identification Numbers and proof of identity.
• Consent from the first directors to act in their respective roles, and disclosure of any other directorships they hold.

Once the Registrar verifies and registers these documents, "Tech Innovations Pvt. Ltd." will receive a certificate of incorporation and a unique corporate identity number, marking the official start of the business.

If Alice or her co-founders provide false information during this process, they could face legal action under section 447 of the Act, which could include penalties or even dissolution of the company.