Question

Bhumi wants to set up a private ltd. company. As an advisor of Bhumi guide her and (6)

explain the steps of formation of a private ltd. company.​

Answer 1

Answer:

To form a private limited company minimum two members are required and maximum 50. Bhumi must select at least one more member to form a private limited company. After selecting the members, he must undertake the following two stages:

1. Promotion

2. Incorporation.

explanation

Persons desirous of forming a company must adhere to the step by step procedure as discussed below:-

1. Apply for Directors Identification Number and Digital Signatures.
2. Selection of type of the company.
3. Selection of name for the proposed company.
4. Drafting of Memorandum and Articles of Association.
5. Stamping, digitally signing and e-filing of various documents with the Registrar.
6. Payment of Fees.
7. Obtaining Certificate of Incorporation.
8. Preparation and filing of Prospectus/Statement in lieu of Prospectus and e-Form 19/20 (in case of public companies) for obtaining the certificate of commencement of business.
9. Obtaining Certificate of Commencement of business (in case of public limited companies).