Formation Of Company | Education

                      Formation of company is an act of registration a corporate body for the purpose to build an artificial person. A company can be formed through its, permition, incorporation, subscription and at last commencement of business  i- Company ordinance 1984 ii- SECP 1997 “Union or association of person for carrying on a commercial or industrial enterprise.  Every company after it has been formed shall be registered. Procedure of formation of company can be discussed under five stages towards the formation of company. 

                    i- Permotion stage  ii- Incorporation stage   iii- Subscription stage iv- Commencement stage  v- Conformation by SECP At permotion stage following tasks are performed.  i- The type of company shall   be choiced  ii- Meeting of mind must take effect iii- Idea shall be conceive  iv- Eligibility of experts shall be taken into consideratio  v- Preliminary contracts shall be improved vi- The contracts shall be registered if necessary

                             For incorporation of a company some documents shall be prepared discussed as followedMemorandum is the association of the company. It is the document which is to be prepared for filing as application for incorporation.Articles include all internal conditions or rules of the company. It is the second important document for the formation of company. A declaration by the promoter that they are going to form a company must also be made for incorporation purposes. A receipt of challan shall also be attached with the application of registration of company. At subscription stage company has to comply with following requirements.

                     A prospectus shall be prepared for the purposes to invite the public. Lists of the persons have consented to act as directors of the company shall be prepared. Every company shall deposit registration fee on share capitals in the government treasury. A certificate of incorporation shall be issued to a company which has complied with all the requirement of registration. Private company need not to get certificate of commencement of business. A public company after getting incorporation certificate shall also be required to receive a further certificate called trading certificate.  “It shall be conclusive evidence that company is entitled to commence business”

                                  A company of want to enlist itself a listed company in stock exchange than all the requirements of a listed company must be the fulfilled. Last step is to get conformation from SECP for the formation of company. Company shall be called an artificial person and a separate legal entity. A company can be formed through its, permition, incorporation, subscription and at last commencement of business. Company shall be called an artificial person and a separate legal entity.