The following things are required for the formation of a company.
● Promoters are required.
● Objectives of the promoters must be laid down.
● The names of the promoters must be subscribed to the memorandum of the company.
● The promoters must comply with the Company Act, 1956.
Private companies and public companies having a share capital can immediately start business after the certificate of registration is issued by the registrar. The incorporation of a company takes approximately 35 days in India. Public companies can offer their shares for sale to the public. The minimum share capital for a public company to be incorporated must be INR 50,000. A private company places certain restrictions on ownership.
For the formation of a company, a company passes through the following three stages −
● Promotional stage
● Incorporation stage
● Commencement of business