Stages of Formation of Company are :-
4.Commencement of Business.
First Stage :- - - - - Promotion - - - -
Promotion is the first step of the formation of the company. It involves conceiving a business oppurtunity and taking an intiative to form a company.
Functions of a Promoter :-
1.Identification of Business opp.
4.Fixing Up signotries to MOA.
5.Appointment of Professionals.
6.Preparation of necessary documents.
Second Stage :- is INCORPORATION it involves submitting of necessary documents .
Third Stage :- Capital Subscription
It invovles - - -
- SEBI approval
- Filling of Prospectus
-Appointment of bankers , brokers and underwriters.
- Minimum Subscription.
- Application to Stock Exchange
- Allotment of Share.
Fourth stage :- Commencement of Business.
It involves .
- A declaration that share payable in cash have been subscribed and alloted up.
-A declaration that every director has been paid in cash.
- Declaration that no money is payable or liable to become payable to applicants cuz , of the failure of the company.
- A statutory declaration that the above requirements has been complied with .This can be signed by the director of the company.