What is company formation. Explain in brief
a) Capital raising stage.
b) Commencement of business stage.
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Company formation is the process of registering a business as a limited company at Companies House. As a result, the business becomes a distinct legal entity.
a)Capital raising stage:When looking to expand, a company can raise additional capital by applying for a new loan or opening a line of credit. This type of funding is referred to as debt capital because it involves borrowing money under a contractual agreement to repay the funds at a later date.
b)Commencement of business stage:Certificate of Commencement of Businessunder Companies Act, 2013. A Public and Private Limited company having share capital cannot commence business until it has obtained the certificate of commencement of business (COB) from the concerned Registrar of Companies.
I hope it helps
a)Capital raising stage:When looking to expand, a company can raise additional capital by applying for a new loan or opening a line of credit. This type of funding is referred to as debt capital because it involves borrowing money under a contractual agreement to repay the funds at a later date.
b)Commencement of business stage:Certificate of Commencement of Businessunder Companies Act, 2013. A Public and Private Limited company having share capital cannot commence business until it has obtained the certificate of commencement of business (COB) from the concerned Registrar of Companies.
I hope it helps
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