Question

1) Explain the following stages in the formation of a company:
a) Promotion Stage b) Incorporation Stage?​

Answer 1

Answer:

a)Promotion stage: It is the first stage in the formation of a company. It begins with a person or a group of persons having thought of or conceived a possible future business opportunity and then taking an initiative to give it a practical shape by way of forming a company

b) Incorporation stage: It is also called as Registration Stage. Incorporation or registration is the second stage in the formation of a company. ... A company is properly constituted only when it is duly registered under the Act and a Certificate of Incorporation has been obtained from the Registrar of Companies.