Companies Act - Effect of Registration of Company (Section 9)

We have seen what all documents we need to submit for incorporation of company. Assume you have submitted all required document. Registrar of Companies is happy. He registered all the documents and issued a certificate of incorporation. Next what ? What exactly is the effect of registration ? Section 9 delves into some details.

Section 9

After incorporation, new body corporate will come into existence with separate existence from their member. It will be separate entity(separate legal person) with perpetual succession and common seal.  There will be binding contract between this new body and members through Memorandum and Articles. Check Hari Nagar Sugar Mills Vs SS Jhunjhunwala.

This incorporated Company will have all the power to carry out functions of Company.

Now company will have power to acquire, hold or dispose of property. 

Such Property could be
  • Tangible such as building
  • Intangible such as patents, copyright
  • Movable such as Laptops, Desktops, Dustbins
  • Immovable such as Office
 Incorporated company can contract and sue or get sued by others.

Thats pretty much the effect of registration of company. After registration, company can act like a company. :D







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