Registration Process of Company in Pakistan

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QUAID-i-AZAM SCOOL OF MANAGEMENT SCIENCES, ISLAMABAD

SUBMITTED BY:
Ishtiaq Ahmed
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SUBMITTED TO:
SIR, ABDUL RAZZAQ
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CLASS: MBA-II
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SUBJECT:
FINANCIAL ACCOUNTING

ACKNOWLEDGEMENT

First of all I’m very thankful to ALMIGHTY ALLAH for giving me strength to complete this report. Without his blessing it was not possible. I also wish to express my sincere thanks to Sir, ABDUL RAZZAQ. I’m extremely grateful and indebted to him for his sincere and valuable guidance, expertise and constant encouragement and supportive efforts.

TABLE OF CONTENTS

WHAT IS A COMPANY?……………………………………………………………………………….. KINDS OF COMPANIES……………………………………………………………………………….. COMPANIES ORDINANCE, 1984…………………………………………………………….. WHY IS IT IMPORTANT TO REGISTER A COMPANY?………………………………… SECURITIES COMMISSION OF PAKISTAN (SECP)………………………………………….. THE FORMATION, INCORPORATION AND REGISTRATION OF A COMPANY……. PRE-INCORPORATION STAGE……………………………………………………………………….. FORMATION OF A COMPANY (FLOW-CHART)…………………………………………… MEMRANDUM OF ASSOCIATION……………………………………………………………………. ARTICLE OF ASSOCIATION……………………………………………………………….................. INC. OF A COMPANY HAVING OBJECTS OF PROVIDING SECURITY SERVICES…. TRANSFERBILITIES OF COMPANIES……………………………………………………………….. POST INCORPORATION STAGE……………………………………………………………….. MEMORANDUM OF UNDERSTANDING…………………………………………………………… RETAINED EARNINGS & its VALUATION BY DIFFERENT METHODS……...……… ANNUAL GENERAL MEETING - AGM'……………………………………………………………… TYPES OF SHARE CAPITAL AND DIFFERENT STOCKS..........................................

1. WHAT IS A COMPANY?
Company is legally an entity apart from its members, capable of rights and duties of its own, and endowed with the potential of perpetual succession. It is an ‘intricate, centralized, economic, administrative structure run by professional managers who hire capital from the investors”. In other words a company means certain persons registered under the Companies Ordinance, 1984. 2. KINDS OF COMPANIES

With the increasing complexities of the corporate world, companies take on diverse forms with the passage of time. However, the basic two genres of company remain as follows: i. Private Limited Company

Any one or more persons may by subscribing to a memorandum of association for a lawful purpose may form a private company. (The Companies Ordinance, 1984) ii.. Public Limited Company
Any three or more persons may form a public limited company, and any seven or more persons may form a listed public company in the same manner and purpose. (The 3. COMPANIES ORDINANCE, 1984
Both the companies stated above might either be limited by share, or guarantee, or unlimited. Company as a mode of business-Advantage Where greater mobilization of capital is required, which the resources of a few persons cannot provide, the formation of a company is advisable as this is the only form of business organization which offers the privilege of limiting of members’ liability for debts of the company. 4. WHY IS IT IMPORTANT TO REGISTER A COMPANY?

The Companies Ordinance, 1984 strictly lies down that no company shall be formed for the acquisition of gain through its mode of business unless it is registered as a company under the ‘Ordinance’. Hence any person who shall do so in contravention of the provisions of the ‘Ordinance’ shall be liable for the payment of fine which may extend to Rs. 5000 and also for all the liabilities incurred in the business. 5. SECURITIES COMMISSION OF PAKISTAN (SECP)

Securities and Exchange Commission of Pakistan (SECP) established under the Securities and Exchange Commission of Pakistan Act 1997 was operationalized as a body Corporate on 1st January 1999. SECP replaced the former corporate regulatory body, Corporate Law Authority. It has been vested with adequate operational, administrative and financial autonomy. The SECP’s head office is at the Federal Capital,...
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