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    Formation of A Company

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    Aseem1
    The document discusses the formation and incorporation of a company. It defines a company as a voluntary association of persons formed for business purposes that has a separate legal identity from its members. The key steps in forming a company are promotion, which involves generating the business idea and raising capital, and incorporation, which requires filing documents like the memorandum and articles of association with the registrar and obtaining a certificate of incorporation. A company gains legal status and powers once it is incorporated.

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    Formation of A Company

    Uploaded by

    Aseem1
    515 views17 pages
    The document discusses the formation and incorporation of a company. It defines a company as a voluntary association of persons formed for business purposes that has a separate legal identity from its members. The key steps in forming a company are promotion, which involves generating the business idea and raising capital, and incorporation, which requires filing documents like the memorandum and articles of association with the registrar and obtaining a certificate of incorporation. A company gains legal status and powers once it is incorporated.

    Original Description:

    Corporate Law

    Original Title

    Corporate Law

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    © Attribution Non-Commercial (BY-NC)

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    The document discusses the formation and incorporation of a company. It defines a company as a voluntary association of persons formed for business purposes that has a separate legal identity from its members. The key steps in forming a company are promotion, which involves generating the business idea and raising capital, and incorporation, which requires filing documents like the memorandum and articles of association with the registrar and obtaining a certificate of incorporation. A company gains legal status and powers once it is incorporated.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    515 views17 pages

    Formation of A Company

    Uploaded by

    Aseem1
    The document discusses the formation and incorporation of a company. It defines a company as a voluntary association of persons formed for business purposes that has a separate legal identity from its members. The key steps in forming a company are promotion, which involves generating the business idea and raising capital, and incorporation, which requires filing documents like the memorandum and articles of association with the registrar and obtaining a certificate of incorporation. A company gains legal status and powers once it is incorporated.

    Copyright:

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    Download as PPTX, PDF, TXT or read online from Scribd
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    of 17

    FORMATION OF A

    COMPANY
    NARENDRA MISHRA
    MBA 1st SEM
    ROLL NO. 23
    CONTENT OF PRESENTATION
    qConcept of company
    qCharacteristics of a company
    qClassification of a company
    qIncorporation of a company

    q
    CONCEPT OF A COMPANY
    Company is a voluntary association of persons
    formed for the purpose of doing business
    having a distinct name and limited liability. It
    is a juristic person having a separate legal
    entity distinct from the members who
    constitute it, capable of rights and duties of
    its own and endowed with the potential of
    perpetual succession.
    CHARACTERISTICS OF A
    COMPANY
    1. Incorporated association


    A company is formed and registered by
    complying with the prescribed formalities
    prescribed under the act.
    2. Artificial Person


    A company is an artificial person but not a
    fictitious person.
    3. Separate legal entity


    A company is a legal entity separate from its
    owners.It is a person distinct from who owns it.
    4. Perpetual succession


    5. Limited liability

    Liability of the members of the company are
    limited

    6. Common seal

    Common seal is the official signature of the
    company. Any document on which common
    seal is affixed is deemed to be signed by the
    company.

    7. Transferability of shares

    Shares are movable property transferable in
    the manner provided in articles. But in case of
    public company shares are freely transferable.

    8. Right to sue

    A company is a legal person. A company acts in its
    own name, and not as an agent of its members. A
    company can sue others and can be sued on its
    own name.

    9. Right to enter in to contracts

    Since a company is a legal person, it has the right
    to enter into a contract on its own name.

    10. Separation of ownership from management

    The members do not participate in day to day
    affairs of the company. The management of the
    company lies in the hands of elected
    representatives of members, commonly called
    board of directors.
    CLASSIFICATION OF
    COMPANIES
    On the basis of business activities
    undertaken

    1- Manufacturing Activities

    2- Service Activities

    3- Non-Banking Finance Activities

    4- Non-profit making (Section-25)

    5- Producer (Section 581 A)


    v On the basis of membership pattern or
    size
     Public
     Private
     Government
    v On the basis of place of registration
     Indian Company
    (Incorporated in India)
     Foreign Company
    (Company incorporated outside
    India but having place of
    business in India)

    On the basis of liabilities of the
    members and directors:
    v With Limited liability

    1- Limited by shares

    2- Limited by Guarantee & having share

    capital

    3- Limited by Guarantee and having no share capital

    v With Unlimited Liability


    v
     On the basis of control over the
    management


    1- Holding Company

    2- Subsidiary Company


    PROMOTION
    Meaning of promotion

    Promotion means all those steps that are required
    to bring a company into existence and then to set
    it going. Promotion involves following five stages:

    1- Generation of idea of starting a new

    company

    2- Registration of the company

    3- Floatation, i.e., raising of capital or arranging
    the financial resources so as to carry on its
    business operations.

    4- Obtaining the certificate of commencement of
    business (necessary for public company only)
    INCORPORATION OF A COMPANY
    PROCEDURE

    1- REQUIREMENT OF SEC.12

    (a) associations of persons

    (b) statutory minimum number of members

    (c) common object

    (d) lawful object

    (e) subscription

    (f) compliance of formalities


    2- Availability of name

    Required to fill FORM NO. 1A

    3- Documents required to be filed with the

    registrar

    (a) Memorandum of association

    (b) Article of association

    (c) Statutory declaration stating that all the

    requirements relating to registration of
    the company have been complied with.

    (d) If a managing director, whole time director or
    manager is proposed to be appointed , the
    agreement entered into by the company with such
    person must be filed with the registrar.

    (e) If a director has been named in the articles,
    his consent must be filed with the registrar.
    OPTIONAL DOCUMENTS

    Following documents may be filed with the
    registrar before incorporation or within 30 days
    of incorporation.

    (a) Address of registered office of the
    company.

    (b) Particulars of directors, manager and
    secretary.

    4- Issue of certificate of incorporation

    The registrar shall retain and register the
    documents filed with him, and afterwards
    register the company if he is satisfied that

    (a) all the requirements aforesaid have been
    compiled with , and

    (b) the company is authorized to be registered
    under this act.
    EFFECTS OF INCORPORATION

    (a) The company becomes a body corporate

    (b) The company acquires a legal recognition

    (c) The company gets a name in which it shall
    carry on business.

    (d) The company comes into existence from
    such date as is mentioned in the certificate of
    incorporation.

    (e) The objects of the company are laid down.
    REFERENCES
    Corporate law by Munish Bhandari
    Wikkipedia.com
    Corporate law M.C. Kuchhal


    THANK YOU

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