PROMOTION AND FORMATION OF A COMPANY

The process by which Company is brought into existence is called its promotion. It starts with the birth of the company. The persons who conceive the company and invest the initial funds are known as the promoters of the company. The promoters enter into agreements with various parties for formation of the Company.

Formation of company is governed by the provisions contained Companies Act 2013. Formation of company involves several steps which are explained here under. Formation of company in India are required from the time a business idea originates to the time, a company is legally ready to commence business are referred to as stages in the formation of a company.