Question

describe breifly the stages of formation of company ?

Answer 1

 
Stages of Formation of Company are :- 
1. Promotion 

2. Incorporation

3.Subscription 

4.Commencement of Business.

First Stage  :-        - - - -  Promotion - - - -

Promotion is the first step of the formation of the company. It involves conceiving a business oppurtunity and taking an intiative to form a company.

Functions of a Promoter :-
1.Identification of Business opp.
2.Feasibility studies
3.Name approval 
4.Fixing Up signotries to MOA.
5.Appointment of Professionals.
6.Preparation of necessary documents.

Second Stage :- is INCORPORATION it involves submitting of necessary documents .

Third Stage :- Capital Subscription 
It invovles - - -
- SEBI approval
- Filling of Prospectus
-Appointment of bankers , brokers and underwriters.
- Minimum Subscription.
- Application to Stock Exchange
- Allotment of Share.

Fourth stage  :- Commencement of Business.
It involves .
- A declaration that share payable in cash have been subscribed  and alloted up.
-A declaration that every director has been paid in cash.
- Declaration that no money is payable or liable to become payable to applicants cuz , of the failure of the company.
- A statutory declaration that the above requirements has been complied with .This can be signed by the director of the company.

Answer 2

Stages of Formation of Company are :- 1. Promotion 2. Incorporation 3.Subscription 4.Commencement of Business. First Stage :- - - - - Promotion - - - - Promotion is the first step of the formation of the company. It involves conceiving a business oppurtunity and taking an intiative to form a company. Functions of a Promoter :- 1.Identification of Business opp. 2.Feasibility studies 3.Name approval 4.Fixing Up signotries to MOA. 5.Appointment of Professionals. 6.Preparation of necessary documents. Second Stage :- is INCORPORATION it involves submitting of necessary documents . Third Stage :- Capital Subscription It invovles - - - - SEBI approval - Filling of Prospectus -Appointment of bankers , brokers and underwriters. - Minimum Subscription. - Application to Stock Exchange - Allotment of Share. Fourth stage :- Commencement of Business. It involves . - A declaration that share payable in cash have been subscribed and alloted up. -A declaration that every director has been paid in cash. - Declaration that no money is payable or liable to become payable to applicants cuz , of the failure of the company. - A statutory declaration that the above requirements has been complied with .This can be signed by the director of the company.