1.Formation of company-steps for formation.pptx

Formation of company

1. Formation of company Dr.S.Jayanthi Sobhana Asst.Professor,Dept of Commerce PA Sri Ramakrishna college of arts &Science

2. Formation of company The formation of a company is a structured process that transforms an initial idea into a legally recognized entity. This process involves multiple stages, ensuring the business complies with the regulations outlined in the Companies Act, 2013 .

3. Stages in formation of Company 1 . Promotion Stage 2. Registration stage 3. Incorporation stage 4 . Commencement stage

4. 1. Promotion stage The promotion stage marks the initial phase in the formation of a company. This is where an idea evolves into an actionable business plan.

5. 2. Registration Stage The registration stage is when the company becomes a legally recognised entity under the Companies Act, 2013.

6. 3. Incorporation Stage The   incorporation stage  validates the company’s formation through the issuance of a Certificate of Incorporation. This certificate acts as proof that the company is legally established.

7. 4. Commencement of Business Stage The   commencement of business stage  is critical for public companies, as they require an additional certificate to start operations.