The document discusses the key documents and processes involved in forming a company in India. It explains that incorporation refers to the legal process of forming a corporate entity recognized under law. The key documents required are the Memorandum of Association (MOA) and Articles of Association (AOA). The MOA is the principal document and contains information like the company's name, objectives, capital structure, and liability of members. It defines the scope and limitations of the company. The AOA contains regulations related to the internal management of the company.

1. FORMATION OF A COMPANY
PPT BY – Shruti Verma
(Assistant Professor)

2. Process of Formation of a Company

3. INCORPORATION
The incorporation of a company refers to the
legal process that is used to form
a corporate entity or a company. An
incorporated company is a separate legal entity
on its own, recognized by the law. These
corporations can be identified with terms like
'Inc' or 'Limited' in their names.

4. IMPORTANT DOCUMENT USED
INCORPORATION
ARTICLE OF
ASSOCIATION
PROSPECTUS
MEMORANDUM OF
ASSOCIATION

5. MEMORANDUM OF ASSOCIATION
• The MOA is the principal document of the
company. It is consider as a charter of the
company.
• It contains power and objective of the company.
• It also describe the scope of operations of the
company.
• It can be altered only according to the provisions
made in the company act regarding in alterations.
• MOA provides information to outsiders such as
creditors, shareholders, investors, suppliers etc to
know the limitations and scope of company’s
dealings. It is also known as Doctrine of outdoor
management.

7. 1. NAME CLAUSE
• This clause contains the complete name of the company.
• Company can choose any name subject to the following:
(i) The name of the company must end with the word ‘limited’
in case of public limited company and ‘private limited’ in
case of private company.
(ii) The name should not be similar or identical of any other
company.
(iii) The name should not convey any connection or link of the
company with the government dept.
• Alteration of a name clause: A company can change its
name under the provision of special resolution and by
obtaining a written approval of the central government.
GOI MCA ROC
COMPANY

8. 2.OBJECT CLAUSE
• It contains the main objective of the company and
other secondary objectives of the company may
pursue.
• This clause defines the scope and limitation of the
activities of the company.
• The objects must keep in mind the following
conditions:
(a) It must be Legal.
(b) It must not be immoral.
(c) It should not be the contrary to the provisions of
any law.
• In order to alter its object clause, a company must
pass a special resolution as mentioned section 13
of Companies Act, 2013

9. 3. LIABILITY CLAUSE
• This clause contains the liability of the members of
the company
• In case of company limited by shares then the
members of the company is limited to the extent of
unpaid amount of their capital.
• In case of company limited by guarantee the liability
is limited to the amount of the guarantee given by
each member.
• If the company wants to make an alteration in a
liability clause then it must pass a unanimous
resolution in a meeting of its members.

10. 4. CAPITAL CLAUSE
• This clause contains the amount of share capital
with which a company is to be registered.
• The capital with which a company is to be
registered is called registered/authorized
nominal capital.
• Alteration of the capital clause: A company can
alter in its capital clause by passing a special
resolution given in the section 94 of companies
act.

11. SUBSCRIPTION CLAUSE
• This clause contains the declaration of directors.
“we, the several persons who names and address
are submitted , are desirous of being firm of the
company in accordance with MOA undertakes to
take the qualifications of shares.”
The declaration must signed by all the directors.
• This cannot be altered.

13. ARTICLE OF ASSOCIATION