Question

The whole process of the company
formation may be divided into three
direct stages, the sequence is
Promotion, incorporation by
registration, commencement of
business
Incorporation by registration,
commencement of business,
promotion
Commencement of business,
promotion, incorporation by
registration
Commencement of business,
incorporation by registration,
promotion​

Answer 1

Answer:

What is the best regards and thanks to you soon and I

Answer 2

Answer:

Promotion

Incorporation

Capital subscription stage

Commencement of business

Explanation:

Stages in formation of a company are the following:

1. Promotion
2. Incorporation
3. Capital subscription stage
4. Commencement of business

• Promotion stage includes all the steps right after discovery of ide to starting the company till it is formed.
• The steps in the promotion stages are:

1. Identification of business opportunities
2. Feasibility studies
3. Name approval
4. Fixing up signatories to members
5. Appointment of professionals
6. Preparation of necessary documents.

• Incorporation stage refers to the registration of a company with the registrar.
• Steps involved in Incorporation stages are:

1. Filling of necessary documents
2. Fees payment
3. Registration
4. Certificate of Incorporation

• Capital subscription stage is only for public limited companies.
• the steps involved are:

1. SEBI Approval
2. Prospectus or statement of lieu of prospectus
3. Minimum subscription
4. Application to stock exchange
5. Allotment of shares

• Commencement of Business includes the issue of certificate of commencement of business.
• after verification of documents by registrar, if he is satisfied with the authenticity of documents , commence certificate is issued.

Thus, there are four steps for formation of company i.e. Promotion

IncorporationCapital subscription stageCommencement of business

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