Discuss the stages of formation of a company?
Answers
Answer:
In this, the first step of Formation of a Company is to prepare valid documentation called a Memorandum of Association (MoA). MoA of any company involves valid fundamental conditions so that the nature of a company can be easily ascertained.
Under the Formation of a Company Act 2013, it is assumed that every company has its Memorandum documentation because it is also the charter of the company. If seen, the company’s MoA works to keep their external affairs in control while the Articles of Association (AoA) of the company works to keep control of the internal affairs of the company.
At the time of registration of the company, there are certain conditions which require the approval of the Registrar for the purpose of company’s registration. In order to fulfill the registration, the company will have to include its name and headquarters where it will be located in its documents, after that, they will get an order to get their company registered.
At the time of formation, they will also have to tell that our company is a public limited company or a private limited company.
As you know, the Memorandum has a very large legal document so that we also called the charter of the company and the principal document of the company. Likewise, no company can register without the Memorandum of Association, because it helps to describe the rights and objects of the company.
According to the Companies Act 2013, Memorandum of Association (MoA) is a very important document for any company because this document contains various legal documents like members names, signatures, address, and their holding shares also.