The steps for formation of a company are:
Promotion of a company: Promotion includes all the initial activities for bringing a company into existence –
- Necessary number of members collection and assistance in company formation;
- Contract before incorporation;
- Drawing up Memorandum of Association (MA);
- Drawing up Articles of Association (AA).
Filling of documents and registration: Promoters are required to file necessary documents in this stage with necessary fees.
- Memorandum of Association;
- Articles of Association;
- Statement of nominal capital;
- Statutory declaration;
- Name of the proposed directors;
- Statement of directors agreement to act as directors;
- Address of registered office;
- Statement about directors and secretary.
The commencement of business: After receiving above documents, registrar (Registrar of Joint Stock Companies) gives certificate of incorporation. At this stage, the private company can star business, but the public company is required to take letter of commencement of business, which is given after submission of statement about-
- Collection of minimum subscription;
- Directors letter of acceptance of qualifying shares and proof of making payment,
- Prospectus or statement in lieu of prospectus.