C O M P A N Y F O R M AT I ON
The formation of a company is a legal process, which involves a series of steps and legal formalities. The process of formation is divide into the following three stages:
1) Promotion stagePromotion is the process of discovery and investigation of business opportunities, planning and organization of physical, financial, and human resources with a view to forming a company.
2) Registration and incorporation stage is the second stage of the formation of a company. A company comes into existence only after its registration and issue of a certificate of incorporation to it. It usually involves four steps; 1. Preliminary steps 2. Application for reg. And delivery of documents 3. Scrutiny and reg. of documents by the registrar 4. Issue of certificate of incorporation and CIN
3) Commencement of business stage according to the latest provisions of the Companies Act, every company is entitled to commence its business as soon as it obtains its certificate of incorporation. No other formality is required to comply with it.