FORMATION OF COMPANY : FORMATION OF COMPANY Promotion
Incorporation or Registration
Commencement of Business
Memorandum of Association
Articles of Association
Prospectus
PROMOTION : PROMOTION Promotion stands for all those activities which give existence to a business unit.
In this, first the idea to establish the business comes in the mind of promoters.
Second the detail investigation is done on this idea to execute.
Third different factors which need to run the business are assembled.
PROMOTION : PROMOTION Fourth to get all these factors we need money, so the different sources of finance are considered to raise the finance.
INCORPORATION OR REGISTRATION : INCORPORATION OR REGISTRATION The second stage of formation of company is to registered it under Indian Company Act 1956.
Company registration is compulsory.
Following activities has to done to registered the company:
Mention about the registered office
Mention about the Name of Company
INCORPORATION OR REGISTRATION : INCORPORATION OR REGISTRATION Mention about underwriter, bankers, legal advisors etc.
Prepared important documents like Memorandum of Association and Articles of Association.
Mention about the list of directors and their consent.
Sending application with prescribed fee to the Registrar.
COMENCEMENT OF BUSINESS : COMENCEMENT OF BUSINESS In case company issuing the Prospectus:
A company must receive the amount of minimum subscription within 4 months from the date of issue of prospectus.
Every director must pay the due amount on his holding shares.
Statuary declaration by any director that all the formalities have been compiled.
COMENCEMENT OF BUSINESS : COMENCEMENT OF BUSINESS In case of company not issuing the prospectus:
A statement in lieu of prospectus has been presented to registrar.
Every director must pay the due amount on his holding shares.
Statuary declaration by any director that all the formalities have been compiled.
MEMORANDUM OF ASSOCIATION : MEMORANDUM OF ASSOCIATION Memorandum of Association is such a document in which those conditions are stated on the basis of which a company is incorporated.
A company cannot be incorporated without it.
The main aim of the memorandum of association is to tell the sphere of company’s