Core concepts
- 01Types: OPC, private (2-200), public (≥7), Section 8 (non-profit).
- 02Promoters initiate formation; MOA + AOA submitted to ROC.
- 03MOA clauses: Name, Registered Office, Object, Liability, Capital, Subscription.
- 04Certificate of Incorporation conclusive evidence of company's existence (Sec 7(2)).
- 05Doctrine of indoor management protects outsiders dealing in good faith (Royal British Bank v. Turquand).
Flowchart summary
Incorporation Flow | Promoters --> Reserve Name (RUN/SPICe+) | File: SPICe+ (Part A & B) + MOA + AOA + INC-9 + Form 22 | ROC verifies --> Certificate of Incorporation | Apply: PAN, TAN, GST (via SPICe+)
Exam-critical pointers
- ⭐Pre-incorporation contracts: company not bound; promoter personally liable.
- ⭐Doctrine of constructive notice: outsiders presumed to know MOA/AOA (filed with ROC).
- ⭐Section 8 company: licence in lieu of word 'Limited'; surplus not distributed.
- ⭐Conversion of OPC to private/public mandatory if paid-up > ₹50 lakh OR turnover > ₹2 crore for 3 years.
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