when any body is inclined to form
a company, the following steps have to be taken:-
(a) Preparation of memorandum of association.
(b) Preparation of Articles of association.
(c) Preparation of the Preliminary contracts, if any.
(a) Registration of the company.
(e) Preparation and issue of Prospectus.
() Raising necessary capital to start the work.
(g) Obtaining certificate of commencement of business (only
in the case of a public company)
Following are the steps of promotion–
1. Discovery of idea
2. Discovery of promoters or sponsors to launch the
enterprise, minimum members and directors.
3. Investigation, analysis and preparation of plan of company
formation.
4. Assembling the preposition.
5. Financing the preposition.
6. Preliminary contracts, in case of purchase of business.
7. Preparation of important documents, memorandum of association and articles of association.
8.Formalities regarding licences and permits from the
Governnment.
9.Preliminary work regarding acquiring of land, plant and
machinery etc.
10. Ascertaining the name of the company.
Documents Required in Formation of a Company-
1. Memorandum of Association.
2. Articles of Association.
3. A list of Directors.
4. A written consent of the Directors.
5. A statutory declaration that all provisiĆ³ns ofthe Companies
Act have been complied with.
6. Declaration by Directors regarding qualification shares.