Promoting a company
Forming a company involves few steps which has to be fulfilled by the promoter of the company. The promoter is a person or persons one who take all the responsibility to bring the company into existence. Promotion involves discovery of specific business opportunity and subsequent organisation of the factors of production.
In the formation of a public limited company having share capital, mainly four stages are involved. They are:
1. Promotion
2. Incorporation
3. Capital Subscription
4. Commencement of business or trading certificate
In case of formation of a private company, only the first two stages are involved, because, a private company can commence its business after securing the certificate of incorporation from the Registrar of Companies.
Steps involved in Company Formation are :
1. Discovery of an idea
2. Detailed investigation
3. Assembling
4. Financing the proposition
Incorporation of the company
After taking all the preliminary steps for registration, an application along with the necessary documents, stamp duty, registration and filing fees, has to be made to the Registrar for the issue of the certificate of incorporation.
