The document discusses the key steps involved in forming a company in India. These include: 1) Deciding on the type of business and company structure. 2) Obtaining necessary approvals and documents like Digital Signature Certificate and Director Identification Number. 3) Filing documents like Memorandum of Association, Articles of Association, and forms for name reservation and incorporation. 4) Raising capital through public offers or private subscriptions from investors. 5) Obtaining a certificate of incorporation and then a separate certificate to commence business operations once minimum capital requirements are met. The process involves promoters, incorporation or registration with regulatory authorities, and establishing the capital structure of the new company.

1. FORMATION
OF
COMPANY
Presented by:
 Abhishek Shandilya (14MBA1358)
 Vikas chandel (14MBA1376)
 Nancy (14MBA1366)

2.  A Company comes into existence when a group
of people come together with a view of forming
an association to exploit the business
opportunities by bringing together; men,
material, money and management
What do you mean by Formation
of a Company?

3. BEFORE STARTING COMPANY
 Which business to start
 Whether a new company should be formed or
take over the business of some existing
company.
 Private company or public company
 What should be the capital of the company etc.

4. 1. Obtain Digital Signature Certificate (DSC)
Obtain a Digital Signature Certificate from authorized DSC issuing authority
2. Obtain Director Identification No. (DIN) [S.153]
Make Application in Form DIR-3 [Rule 9 of Chapter XI Rules]
3. Register DSC in the name of Director on MCA portal
4. Apply for Reservation of Name [S.4(4)]
Apply in Form No. INC.1 [Rule 9].The same shall be reserved for a period of 60 Days
5. Adoption of Memorandum of Association [S.4(6)]
MoA shall be in respective form as prescribed inTable A, B, C, D and E of Schedule I
as may be applicable
STEPS FOR SORMATION OF COMPANY

5. 6. Adoption of Articles of Association [S.5(6)]
AoA shall be in respective form as prescribed inTable F, G, H, I and J of Schedule
I as may be applicable
7. Incorporation
Promotion
Incorporation or Registration
Capital structure/ Flotation
Commencement of business [S.11]
8. Registered Office [S.12]
A company shall have a registered office within 15 days of Incorporation and it
shall file Form No.INC.22 [Rule 25] to verify the same.

6. Incorporation of Companies
 Promotion
 Incorporation or Registration
 Capital Subscription/Floatation
 Commencement of Business

7. 1. PROMOTION
 Promoters are persons engaged in, one or the
other way in the formation of the company
 Promoters make detailed study to assess the
feasibility of the business idea and the amount
of financial and other resources required

8. LEGAL POSITION OF PROMOTER
 Fiduciary relation
PROMOTER’S LIABILITY
 Civil liability (Sec 35)
 Criminal liability (Sec 34)

9. DUTIES OF PROMOTER
 Not to make any secret profit
 To disclose to the company any interest which
he has in a transaction entered into by it

10. REMUNERATION
 Lump sum amount
 Fully paid shares of company
 Commission on shares sold

11. 2. INCORPORATION
I. Type of company: private or public
II. Application for availability of Name
III. Preparation of MoA and AoA
IV. Preparation of other documents
V. Filing of documents for registration

12. IV. Preparation of other documents:
i. Consent of directors,
ii. particulars of directors,
iii. affidavit by the subscriber to memorandum
and first directors,
iv. address for communication,
v. statutory declaration

13. V. Filing of documents for
registration
Certificate of Incorporation
And CIN (Corporate Identity Number)
Certificate of incorporation a conclusive
evidence that all the requirements of companies
act have been complied with

14. 3. CAPITAL SUBSCRIPTION
 If the capital is said through public offers of
shares, the director of the public company will
first file a copy of prospectus with the registrar
of companies. Then investors forward their
application money to the company’s bankers
mentioned in the prospectus.

15. 4. COMMENCEMENT OF BUSINESS
 After obtaining certificate of incorporation, a
company not having share capital may
commence its business
 But a company having share capital, whether
public or private, has to obtain the certificate
to commence the business

16. FOR OBTAINING CERTIFICATE TO
COMMENCE BUSINESS
 Declaration by a director: that every
subscriber to the memorandum has paid the
value of the shares agreed to be taken by him
and paid-up share capital of the company is
not less than 5 lakh rupees in case of public
company and not less than 1 lakh rupees in
case of private company on the date of making
of this declaration.
 Sectoral approvals: e.g. RBI, SEBI

17. THANKYOU