Question

Name the Stages in the Formation of a Company..!!​

Answer 1

Answer:

Formation of a Company: 4 Stages | Business Management

Stage # 1. Promotion Stage:

Stage # 2. Incorporation or Registration Stage:

Stage # 3. Capital Subscription Stage:

Stage # 4. Commencement of Business Stage

Answer 2

The stages in the formation of a company are

1. Promotion
2. Incorporation
3. Capital Subscription

Promotion:

The person or group of persons who come up with a business idea and also work to start the business. It includes steps such as feasibility studies, name approval, prepration of necessary documents like MOA, AOA etc.

Incorporation:

After the ROC (registerar of companies) is satisfied with the documents, he issues a certificate of incorporation and the company is legally born on that date. The certificate of incorporation provides conclusive evidance as to existance of business, ignoring any flaws, if present.

Capital Subscription:

A private company can start business as soon as it is incorporated but a public company takes capital from the public and so, it has to go through this 3rd stage before commencement.

It includes SEBI approval, issuing a prospectus or a statement in lieu of prospectus, appointment og bankes, brokers, underwriters etc.