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Procedure of Formation of Company

When some persons join for business and register their company under company law 1956, then company comes in existence. But this is not complete formation of company. Following are the steps which you have to follow, if you want to format the company under company law.


1st Step : Apply for Company Registration 

First of all, you have to apply to your state's company registrar for registration of company. You have to give application to him with following documents

a) Memorandum of Association

It is the charter of company. In this document, company's working area will be mention. In case of public company, 7  member's signature is needed on this document. In case of private company, 2 members signature is needed on this document.

b) Article of Association

This document shows the rules of internal management. All the members who have signed MOA, have to sign on AOA.

c) Information regarding authorized capital

This document tells the authorized capital limit of company.

d) Information of registered office

This document shows the address of registered office of company.

2nd Step : Inspection by Registrar

After this, it is the duty of promoter that they have to help registrar for inspection.

Registrar see

whether

a) Aim of company is valid
b) Required members have signed on given documents
c) It has completed all the formalities of company creation
d) Name of company is valid.
e) Statutory declaration  has been done.

3rd Step : Registered and Formed 

When company registrar has satisfied with all matters, he will issue certificate of incorporation. After this, private company can start his business. In case of public company, it has to get certificate of commencement of business after getting certificate of incorporation. The certificate of commencement of business will be given, if it has obtained required minimum subscription and deposit the amount of qualification shares.

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