Formation of a Company Under Companies Act, 1956 Essay

A company is an association of both honorive(prenominal) and natural someoned incorporated down the stairs the existent law of a country. in ters of the companies act,1956 it is define as a company performer a company formed and registered under this act or any actual Companysec 3(1). procedure for make-upahy seven or much persons or where the company to be formed is a private company,any two or more persons fellad for any lawful purpose whitethorn by subscribing their names to a history of association and otherwise complying with the requirements of the companies act,1956 in consider of registration,form an incorporated companywith or without limited liability.(sec12) The following(a) ingredients are required for the formation of a company 1.promoters of the company2.lawful objective for which they associate themselves. 3.promoters moldiness subscribe their names to the record of the company 4.promoters must comply with the requirements of the companies act,1956in resp ect of registration which is as follows a.declaration of compliance in Form1as prescribed in Companies(central Governments)general Rules and Forms1956 executed by any one of the following persons advocte of a high school court or a supreme court,attorney or a counselling entitled to sppear before a high court,a company secretary or a chartered ccountant in whole time practice. b.a stamped and signed reduplicate of register and articles of association. c.notice of office of registered office in form18d.formno.32containing particulars of a person th act as managing/wholetime coach of the company. e.particulars in favour of one of the subscribers to the memorandum duly executed on a non judicial stamp paper of the needful value. f. any agreement which the company proposes to infix into with any person g.original true copy of the Registrar of Companies letter intimating about the approachability of name. 5.minimum paid up capital must be one hundred thousand rupees for a priva te company and rupees five lakh for a public limited company. A private ltd company can straightway commence its business later a Certificate of registration is issued by the Registrat after due verification of the documents and on wages of the prescribed fee as qualify in ScheduleX., apublic company having a constituent capital can commence its operations after getting the Certificate of low of business from the registrar.