Investment Company Institution Incorporation

Investment Company Institution Incorporation

The incorporation of an investment company is not a simple matter, and it requires the knowledge of specialists in this field. There are several ways to structure an investment fund, depending on the nature and goals of its activity. The procedure for joining such institutions is also different from that for establishing other companies, as there are specific regulations governing them. This article will provide a general overview of how to set up an investment institution and what must be considered before starting such activities.

Definition of Investment Company Institute

The Investment Company Institute (ICI) is a company or a firm that is registered under the Company Act, 1956. It is an investment company and can raise finance from the capital market. The ICI also holds itself responsible for promoting and regulating the mutual fund industry in India. ICI was established in 1993 by SEBI with an aim to promote and regulate the mutual fund industry in India. The ICI also ensures that mutual funds are managed by qualified fund managers, who have a sound knowledge of the financial markets. The ICI also works towards educating investors about the benefits of investing in mutual funds.

Finance Ministry Directives

The Finance Ministry has issued directives regarding the incorporation of investment company institutions (ICP) in accordance with the Companies Act 2016, which became effective on January 1 this year. The company can raise finance from the capital market and is exempted from income tax on dividends received from its subsidiary companies. It also enjoys exemption from stamp duty on its shares and debentures and is not subject to withholding tax on dividends paid. The company can also raise funds through a private placement of listed shares and debentures. The minimum paid-up equity capital of an ICP is Rs20 million, while it can be any amount beyond that.

Purpose & Objective of Incorporation

The objective of the ICP is to provide an efficient mechanism for the management of funds received from the public, for investment in securities, and for distribution of income therefrom, in such a manner as to ensure the highest returns on investments and the greatest degree of liquidity. ICP is an open-ended fund, which means it can issue and redeem units from investors as per their demand and investment objective. The ICP has been designed to provide investors with more flexibility in their investment decisions.

ICP is an ideal portfolio solution for investors who want to generate both capital appreciation and income while maintaining liquidity. ICP is a unit trust scheme that provides investors with a wide range of investment options such as equity, fixed-income securities, real estate investment trusts (REITs), infrastructure funds (IFs) as well as other alternatives such as private equity funds (PEFs).

Benefits of Incorporation

The incorporation of the Investment Company Institute (ICI) is a new way to raise finance from the capital market. It’s a process where you can sell shares of your business to investors, who will then have an ownership stake in your company. This means that they have voting rights and share in any profits made by your firm. ICIs are regulated by SEBI (Securities Exchange Board of India), which means they must follow strict rules regarding how much money they raise and what kind of investments they make on behalf of their shareholders.

ICIs are also required to issue periodic reports about their operations, which means that investors can monitor the performance of their investments. When you form an ICI, you will have to file registration documents with SEBI and pay a registration fee. You will also need to appoint a board of directors who will represent the interests of shareholders.

Can Raise Finance From The Capital Market

This helps in making better decisions, as well as growing your business and improving its performance. This is because it provides you with the perspective of capital market participants, who will have a better understanding of what your company needs. This makes it easier for them to help you grow and raise funds.

A capital market is a financial market where long-term debt or equity-backed securities are bought and sold. These securities are issued by companies, governments, or other entities to raise money for various purposes. A capital market can be either a primary market or a secondary market. In the primary market, new securities are sold for the first time to investors. In the secondary market, existing securities are bought and sold between investors.


In conclusion, the ICP is a company that has been incorporated under the Companies Act, of 2013. It can be formed by an individual or group of individuals and its primary purpose is to raise funds from the capital market in order to invest in other companies. This type of company is different from others because it does not have any legal obligation towards its shareholders, unlike other companies where they are liable towards their investors if there is any loss incurred through bad management decisions made by them (i.e.).