Project on Company Formation

project
COMPANY FORMATION

Welingkar Institute of Management

Development & Research.

Year of submission: - April, 2011.

Acknowledgement

Certificate from the guide
Table of contents

❖ TITLE PAGE ❖ CERTIFICATE FROM THE GUIDE ❖ ACKNOWLEDGEMENT

A. INTRODUCTION B. BACKGROUND C. METHODOLOGY D. CONCLUSION E. RECOMMENDATION F. LIMITATION G. BIBLOGRAPHY Introduction:-
A company is an association of both natural & artificial persons incorporated under the existing law of a country. Company is a voluntary association of persons formed for the purpose of doing business having a distinct name and limited liability. It is a juristic person having a separate legal entity distinct from the members who constitute it, capable of rights and duties of its own and endowed with the potential of perpetual succession. In terms of the Companies Act “a company means a company formed & registered under the companies Act 1956 or under any of the previous laws relating to the companies" [Section 3(1) (ii)]. In common law, a company is a legal person or legal entity having separate form, & capable of surviving beyond the lives of its members. However, company is not a citizen so as to claim fundamental rights granted to citizens.

Any seven or more persons, or where the company to be formed will be a private company, any two or more persons, associated for any lawful purpose may by subscribing their names to a memorandum of association & otherwise complying with the requirements of the Companies Act 1956 (the Act) in respect of registration, form an incorporated company, with or without limited liability (Section 12 of the Act)

Characteristics of a company:-

A company registered under the Companies Act has the following features: -

(1) separate legal entity;

(2) incorporated body;

(3) artificial legal person;

(4) perpetual succession;

(5) limited liability;

(6) common seal;

(7) right to own property;