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Discuss the stages of formation of a company. - Business Studies

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प्रश्न

Discuss the stages of the formation of a company.

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उत्तर

The following are stages of formation of a company:
a. Promotion of the company: The stage of promotion refers to the process of discovering the idea of the formation of a company and developing it into a concrete form. The stage starts when an individual or a group of individuals discovers an idea for a business that has the potential to be converted into a successful business opportunity.
b. Incorporation of the company as a separate legal entity: The stage of incorporation consists of applying for and obtaining the certificate of incorporation after which the company becomes a valid entity in the eyes of the law.
c. Subscription of capital in the form of shares and debentures: The stage of capital subscription involves raising capital from the public through the subscription of shares.
d. Commencement of business after the completion of the formalities mentioned above: This stage consists of the completion of the formalities and commencement of business by the company.

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Formation of a Company
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अध्याय 7: Formation of a Company - Long Answers [पृष्ठ १८०]

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एनसीईआरटी Business Studies [English] Class 11
अध्याय 7 Formation of a Company
Long Answers | Q 6 | पृष्ठ १८०

संबंधित प्रश्न

Choose the correct option for the following
Minimum number of members to form a private company is


Choose the correct option for the following
Minimum number of members to form a public company is


Multiple Choice Question:

A prospectus is issued by


True/False Answer Question:

Every company must file Articles of Association


Select the correct answer from the options given below and rewrite the statement:
A company is __________.


Select the correct answer from the options given below and rewrite the statement:
A director must have a ________ to be appointed as a director of a company 


Select the correct answer from the options given below and rewrite the statement:
__________is a document which invites the public to buy the shares of a company. 


Write a word or a term or a phrase which can substitute the following statement.

Term which means registering a company as per provisions of Companies Act, 2013


State whether the following statement is True or False.

Promoters can make secret profits while setting up a company.


State whether the following statement is True or False.

A company can be registered even without submitting Memorandum of Association and Articles of Association.


State whether the following statement is True or False.

Every Director has to quote his DIN while giving his consent to be a Director of a company.


State whether the following statement is True or False.

ROC issues CIN only to certain companies.


State whether the following statement is True or False.

All companies need Certificate of Commencement of business.


Find the odd one.


Study the following case/situation and express your opinion.

Mr. Ram, Mr. Sam, and Mr. Tom who are partners have come together to convert their business into a company. They have finalized all the details about the business they want to do, capital needed, etc. However, they do not know how to proceed with the legal formalities. Hence they appoint Mr. Shah who is a Practicing Company Secretary to help them prepare documents needed for incorporating the proposed company.

  1. Can Mr. Ram, Mr. Sam, and Mr. Tom convert their partnership firm into a company?
  2. Name 2 most important documents needed to incorporate a company.
  3. Will Mr. Shah be considered as a Promoter of the Company? Why?

Study the following case/situation and express your opinion.

 Mr. Talong with his 5 friends have submitted all the necessary documents for incorporation of TRIM private limited company.

a) How many minimum promoters are needed to incorporate a private company?

b) When can TRIM Private limited company be said to have come into existence.

c) Name the two most important documents that must be submitted at the time of the Incorporation of a company.


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