Question

What are the four basic steps involved with bringing a corporation into existence?

Answer 1

1. Promotion of a company
A company has to be promoted by a person or a group of person. It begins with implementation of business idea by starting a business enterprise. A promoter can be anyone - there is no legal restrictions on who can be a promoter.

2. Registration of a company
A registration brings a company into existence. The registration begins by providing these documents to the Registrar of Companies - 1. Memorandum of Association, 2. Articles of Association, 3.List of Directors, 4. A written consent by the Directors, 5. Address of the registered Office and lastly, 6. A Statutory Declaration.

3. Raising Capital
Once step 2 is fulfilled, a Certificate of Incorporation is issued by the Registrar. The firm now need to start raising capital either from public or privately. Once it survives the capital subscription stage, it may then obtain a certificate of commencement of business.

4. A Certificate of Commencement of Business
The business can start its operations once it gets a certification of incorporation. This is the stage after which it can start with production and sale of the product.