Corporation Articles of Incorporation are essential founding documents required when establishing a new company in India. They must be prepared and filed in accordance with the Companies Act, 2013 and related regulations issued by the Ministry of Corporate Affairs. These documents are necessary for any business seeking to incorporate as a company in India, whether as a private limited company, public limited company, or one-person company. The Articles contain crucial information about the company's internal management, share capital structure, rights of shareholders, and duties and powers of directors. They serve as a constitutional document that governs the relationship between the company and its stakeholders, and must be drafted carefully to ensure compliance with Indian law while providing sufficient flexibility for future business operations. The document requires proper execution and filing with the Registrar of Companies, along with other incorporation documents.
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1. Name Clause: Specifies the proposed name of the company that has been approved by the Registrar of Companies
2. Registered Office Clause: States the state in which the registered office of the company will be situated
3. Objects Clause: Details the main objects, ancillary objects, and other objects of the company
4. Liability Clause: Declares the nature of liability of the members (limited by shares/guarantee or unlimited)
5. Capital Clause: States the authorized share capital of the company and its division into shares of fixed amount
6. Association Clause: Declaration of association by the subscribers to form the company
7. General Management and Board Matters: Provisions relating to board composition, meetings, and general management
8. Share Capital and Rights: Detailed provisions about share types, rights, transfers, and certificates
9. General Meetings: Rules and procedures for conducting shareholder meetings
10. Voting Rights: Provisions regarding voting procedures and rights of shareholders
11. Directors: Qualification, appointment, removal, and powers of directors
1. Preference Share Rights: Include when the company plans to issue preference shares, detailing their specific rights and restrictions
2. Foreign Investment Provisions: Required when the company expects foreign investment or foreign shareholders
3. Employee Stock Options: Include if the company plans to offer stock options to employees
4. Different Classes of Shares: Necessary when the company plans to have multiple classes of shares with different rights
5. Buyback Provisions: Include if the company wants to retain the right to buy back its shares
6. Joint Venture Provisions: Required when the company is formed as a joint venture between multiple parties
7. Tag-Along and Drag-Along Rights: Include for companies expecting significant investment or future sales of stake
1. Subscriber Information: Details of initial subscribers including their names, addresses, occupation, and number of shares subscribed
2. Initial Directors: List of first directors of the company with their details and DIN numbers
3. Share Capital Structure: Detailed breakdown of the authorized capital into different classes of shares
4. Initial Agreements: Any foundational agreements between promoters or initial shareholders
5. Forms and Procedures: Standard forms for share transfers, proxy appointments, and other regular corporate actions
6. Special Rights: Detailed provisions of any special rights granted to specific shareholders or classes of shares
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