The document outlines the process of forming a company, including the promotion, incorporation, and commencement stages. In the promotion stage, the key steps are discovering business opportunities, investigating, assembling requirements like capital, and preparing documents like the Memorandum of Association (MOA), Articles of Association (AOA), and Prospectus. The MOA defines the company's constitution and activities while the AOA governs internal management. Incorporation involves registering the company documents with the registrar. For commencement, a public company must obtain a certificate after minimum subscription and director shares are paid.

1. Submitted By: Amna javed

3. Outline
• Definition
• Stages in Formation
• Memorandum of Association (MOA)
• Article of Association (AOA)
• Prospectus

4. FORMATION OF COMPANY
• 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

7. PROMOTION STAGE
The very first stage for the formation of the company is
promotion.
Discovery of Business opportunities.
Detailed Investigation.
Assembling necessary requirements.
Capital
To prepare document
1. Memorandum of Association(MoA)
2. Article of Association (AoA)
3. Prospectus of Association

8. Selection of Name
To be identified for legal and business purpose (i.e. “Ltd” or
“Pvt Ltd” ).
The name should not be similar to the existing.

9. Filing of Document
A company need to file the following documents.
1. Memorandum of Association(MoA)
2. Article of Association (AoA)
3. Prospectus of Association

10. Memorandum of Association(MoA)
The MoA is a document which contains the Fundamental
Rules regarding the constitution and activities of the
company.
It is the charter of the company defines its reason for
existence.
 It lays down the area of operation of the company.
 It also regulates the External Affairs of the company.

11. CONTENTS OF MOA
Name: It is the legal requirement that a company must state
the name of the company
Address a company :It is required to state the name of the
province in which the office is situated its also necessary to
give the exact address and name of the city where the
company is located
Liability :this Claus show the nature of the liability of the
members. Etc.

12. The MOA must be signed by at least seven subscribers in the
case of Public Company and two in the case of Private
company

13. Article of Association (AoA)
• These are the regulations that govern the internal management
affairs of the company and the conduct of its business.
• Amount of share capital issued
• Rights of shareholders regarding voting
dividend return of capital.
• Rules regarding issue of shares and debentures.
• Procedure as will as regulation in respect of making calla on
share.
• Procedure of transfer of shares.

14. Article of Association (AoA)
These are the regulations that govern the internal
management affairs of the company and the
conduct of its business.
The Articles are subordinate to the Memorandum of
Association.

15. CONTENT OF AOA:
Amount of share capital issued
Rights of shareholders regarding voting
Dividend return of capital.
 Rules regarding issue of shares and debenture.
 Procedure of transfer of shares.
 Rules regarding appointment of directors,
managing directors, agents and secretaries.

16. CONTENT OF AOA:
• Numbers ,qualification, power and liabilities of
directors.
• Rules regarding to the winding of the company.
• Matters related to the account and audit etc.
• Methods of securing loans.
• Procedure of winding up of a company.

17. PROSPECTUS :
• Prospectus means any document described or issued as a
prospectus inviting deposits from public or inviting offer
from public for the subscription or purchase of any shares
or debentures of the company.

18. CONTENT OF PROSPECTUS
 Date of issue of prospectus.
Name and register office of the company
 Voting rights ,dividend ,expenses on issue etc.
 Name of the stock exchange.
Punishment for fictitious application.
 Names and addresses of leading managers.

19. CONTENT OF PROSPECTUS
Terms of Underwriting & Risk Factors.
 Capital Structure of the company
 Terms and particulars of the issue.
Restriction on transfer and transmission of
shares.

21. Incorporation
The second stage for formation of company is to get the
company registered. for registration of company following
documents are submitted registrar for the registration of
company.
1. Memorandum of association
2. Article of association
3. capital
4. Qualification of shares

22. Incorporation
List of directors
Declaration
If the registrar is satisfied with documents then he will
issue certificate of incorporation private limited company
can start its business after receiving certificate of
incorporation. But a public limited company wait for
certificate of commencement.

24. Issue of Prospectus
After the receipt of certificate of incorporation the promoters
issue prospectus of the company with a copy of application
form for share. Prospectus shows the rules regarding
purchase and sale of share and about the mode of payment.
A copy of prospectus should be submitted to the registrar.

25. Issue of Prospectus
When the requisite minimum number of share has been
subscribed and the qualifying shares of the directors have
been paid the company will submit a declaration to the
registrar.

27. COMMENCENT STAGE
A public company has to received the certificate of
commencement before starting the business.
A company submits the following documents to
registrar.
Prospectus
Minimum subscription
Directors shares

28. • After verifying these documents registrar issue a
certificate of commencement they can start the
business.