Promotion: It begins with a potential business idea. Certain feasibility studies e.g. technical, financial and economic, are conducted to determine whether the idea can be profitably exploited. In case, the investigations yield favorable results, promoters may decide to form the company. Persons who conceive the business idea, decide to form a company, take necessary steps for the same, and assume associated risks, are called promoters.
Steps in Promotion
- Approval of company’s name is taken from the Registrar of Companies
- Signatories to the Memorandum of Association are fixed
- Certain professionals are appropriated to assist the promoters
- Documents necessary for registration are prepared
Necessary Documents
- Memorandum of Association
- Articles of Association
- Consent of proposed directors
- Agreement, if any, with proposed managing or whole time director
- Statutory declaration
