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FORMATON OF COMAPNY

FORMATION OF COMPANY

Manisha38
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FORMATON OF COMAPNY

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  1. NAME: - MANISHA CLASS'' BBA IST YEAR ROLL NO'' 1221983010006 SUBJECT '' BUSSINESS ORG...... TOPIC '' FORMATION OF THE COMPANY

  2. FORMATION OF THE COMAPNY

  3. MEANING :- Formation of a Company means registering or incorporating a company with the Registrar of companies in the state where the company’s registered office is to be located. Based on the minimum number of promoters in formation of a company Promoters are the persons who undertake the method of formation of a corporation • A company is an artificial legal person i.e. it is a creation of law. It comes into existence when it is registered by following the procedures laid down by the Companies Act, 2013. Formation of a Company means registering or incorporating a company with the Registrar of companies in the state where the company’s registered office is to be located. 1. Promotion Stage: Promotion is the first stage in the formation of a company. … 2. Incorporation or Registration Stage: Incorporation or registration is the … 3. Capital Subscription Stage: A private company or a public company not … 4. Commencement of Business Stage: After getting the certificate of …

  4. Characteristic features of a Company • Corporate Body: A company needs to be registered under the Companies Act, 2013. Any other organisation incorporated with the Registrar of Companies, and subsequently not registered cannot be considered as a company. • Separate Legal Entity: A company exists as a separate legal entity which is different from its shareholders and members. Due to this feature, shareholders can enter into a contract with the company and can also sue the company and be sued by the company.• Limited Liability: As the company exists as a separate entity, members of the company are not liable for the debts of the company. Liability of members of a company is limited to the extent of the shares that are held by them or by the extent of the guarantee amount

  5. Transferability of Shares: Shareholders of a public limited company can transfer their shares as per the rules laid down in the articles of association. However, in case of a private limited company, there might be some restrictions on the transfer of shares. Common Seal: The firm is an artificial entity or a person, and therefore cannot sign its name by itself. It creates the necessity of a common seal that can be used for representing the decisions made on behalf of the company. Perpetual Succession: The company being an artificial person established by law perpetuates to exist regardless of the differences in its membership. In simple words, a company is an artificial person. Therefore, it does not have any restrictions on age. The factors like death, insolvency, retirement or the insanity of one or all of the members do not impact the company status

  6. Classification of Companies as limited Companies and unlimited Companies 1. Every Company formed under the Companies Act, 2013 shall be either a limited Company or an unlimited Company. 2. A limited Company may be further classified as follows:- i. Company limited by shares ii. Company limited by guarantee having no share capital iii. Company limited by guarantee and having a share 3. An unlimited Company may be further classified as follows:- i. An unlimited Company having no share capital ii. An unlimited Company having a share capital Classification of Companies as Private and Public Companies Pursuant to Section 3(1) of the Companies Act, 2013, Every Company formed under the Companies Act, 2013 shall be either a Public Company or Private Company.A Company may be formed under the Act as One Person Company (OPC). OPC is also a private Company Pursuant to Section 3(2) of the Companies Act, 2013, A Company formed under section 3(1) may be either- A Company limited by shares; or A Company limited by guarantee; or An unlimited Company

  7. Legal Requirements for formation of a Company Lawful purpose:- Section 3 states that a Company may be formed for any lawful purpose. Thus, no company shall be formed for carrying on any unlawful objects. Subscription to Memorandum:-The Person who sign on the memorandum are termed as subscribers. The Provisions relating to subscription of Memorandum are explained as below:- In case the Company proposed to be formed is a public company, the memorandum must be subscribed to by seven or more persons. In case the Company proposed to be formed is a private company, the memorandum must be subscribed to by two or more persons. In case the Company proposed to be formed is OPC, the memorandum must be subscribed to by one person. Public Company According to section 2 (71) of the companies Act, 2013“public company” means a company which— Read more at: https://taxguru.in/company-law/formation- company-section-3-companies-act-2013.html Copyright © Taxguru.in

  8. (a) is not a private company; (b) has a minimum paid-up share capital as may be prescribed: Provided that a company which is a subsidiary of a company, not being a private company, shall be deemed to be public company for the purposes of this Act even where such subsidiary company continues to be a private company Private Company According to section 2 (68) of the companies Act, 2013 “private company” means a company having a minimum paid-up share capital as may be prescribed, and which by its articles,— (i) restricts the right to transfer its shares; (ii) except in case of One Person Company, limits the number of its members to two hundred: (iii) prohibits any invitation to the public to subscribe for any securities of the company;

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