"a company means a company formed and registered under this act or any existing Company"sec 3(1). procedure for formation: ahy seven or more persons or where the company to be formed is a private company,any two or more persons associated for any lawful purpose may by subscribing their names to a memorandum of association and otherwise complying with the requirements of the companies act,1956 in respect of registration,form an incorporated companywith or without limited liability.(sec12)
The following ingredients are required for the formation of a company:
1.promoters of the company
2.lawful objective for which they associate themselves.
3.promoters must subscribe their names to the memorandum of the company
4.promoters must comply with the requirements of the companies act,1956in respect 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 court or a supreme court,attorney or a pleader entitled to sppear before a high court,a company secretary or a chartered ccountant in whole time practice.
b.a stamped and signed copy of memorandum and articles of association.
c.notice of situation of registered office in form18
d.formno.32containing particulars of a person th act as managing/wholetime director 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 requisite value.
f. any agreement which the company proposes to enter into with any person
g.original true copy of the Registrar of Companies letter intimating about the availability of name.
5.minimum paid up capital must be one lakh rupees for a private company and rupees five lakh for a public limited company.
A private ltd company can immediately commence its business after a Certificate of registration is issued by the Registrat after due verification of the documents and on payment of the prescribed fee as specified in ScheduleX., apublic company having a share capital can commence its operations after getting the Certificate of Commencement of business from the registrar.
You May Also Find These Documents Helpful
-
Private Limited Company( LTD)- Shareholders(familys/friends), Board of Directors, Memorandum of Association & Articles of Association, Mortage/Bankloans/shares, Limited Liability POSITIVES: -Limited liability –Accounts are…
- 1094 Words
- 5 Pages
Satisfactory Essays -
a corporation is a legal entity, meaning it is an entity separate from its shareholders with distinct…
- 3478 Words
- 14 Pages
Powerful Essays -
There needs to be tram tracks outlining date of document and who the document is filed on behalf of…
- 1083 Words
- 5 Pages
Satisfactory Essays -
Companies are owned by shareholders who choose Directors to give direction to the business. The Chief Executive has the responsibility of making the most important decisions. Specialist Managers will be appointed to run the company on behalf of the Board. Shareholders put funds into the company by buying shares. Every company must register with the Registrar of Companies, and must have an official address. Private companies have Ltd after their name. They are normally smaller than public companies. Shares in a private company can only be bought and sold with permission of the Board of Directors.…
- 321 Words
- 2 Pages
Satisfactory Essays -
Feerick, Thomas, Law of Associations 200018 Lecture 6, Pre-registration Contracts and Internal Governance Rules, (School of Law, UWS, 2002)…
- 2995 Words
- 12 Pages
Best Essays -
"It has been a fundamental principle of Irish company law since the decision of the House of Lords in Salomon v. Salomon and Company Limited [1897] A.C. 22 that a company registered under the Companies Acts is an artificial legal entity separate and distinct from the members, whether natural or corporate persons, of which it is composed."…
- 2817 Words
- 12 Pages
Better Essays -
It is a business company owned by either non-governmental organizations or by a relatively small number of shareholders.…
- 6082 Words
- 25 Pages
Satisfactory Essays -
Companies are owned by shareholders who choose Directors to give direction to the business. The Chief Executive has the responsibility of making the most important decisions. Specialist Managers will be appointed to run the company on behalf of the Board. Shareholders put funds into the company by buying shares. Every company must register with the Registrar of Companies, and must have an official address. Private companies have Ltd after their name. They are normally smaller than public companies. Shares in a private company can only be bought and sold with permission of the Board of Directors.…
- 1594 Words
- 7 Pages
Powerful Essays -
A company is a distinct legal entity created by statute. Companies have many of the same legal rights and obligations as do individuals. They can own and sell property, they can hold profits or acquire debts, they can enter into contracts and sue or be sued, and governments can tax them. Companies are advantageous primarily because they become legal entities that are separate and distinct from the individuals who own and control them. This separation is important because in most cases these individuals have limited or no legal liability for the company's wrongdoings.…
- 2075 Words
- 9 Pages
Powerful Essays -
The Companies Act 2006 which received Royal Assent in November 2006 consists of 1300 sections and is the thought to be the single largest piece of legislation ever made. This Act restates and replaces most of the company law provisions brought in by the previous Acts. The 2006 Act introduces an extensive range of changes to areas of company law such as the formation of a company, directors’ duties and liabilities, members/shareholders rights and share capital maintenance.…
- 2116 Words
- 9 Pages
Good Essays -
The House of Lords in Salomon v Salomon1 affirmed the legal principle that, upon incorporation, a company is generally considered to be a new legal entity separate from its shareholders. The court did this in relation to what was essentially a one person company. Windeyer J, in the High Court in Peate v Federal Commissioner of Taxation,2 stated that a company represents:…
- 15226 Words
- 61 Pages
Powerful Essays -
“You may serve the Civil Claim and Form of Dispute Note on a person by:…
- 440 Words
- 2 Pages
Good Essays -
2. A public company must have a share capital over 50,000. They must obtain a trading certificate from the registrar before they can do any business or exercise any borrowing powers. You can obtain your certificate by sending an application to…
- 1085 Words
- 5 Pages
Good Essays -
A company once created by the law can only be destroyed by the process of law. The company exist in its own capacity and does business, generate revenues, incur losses, hire employees and pay for its own tax. It is better to recognize the company as a separate entity because the owners can enjoy the limited liability and risk based on their investment in stock. However, under this concept, the company is treated in its own capacity. It is not human, not a machine, and it cannot operate by itself. Therefore, it must need a group of people of different capacity to manage it ethically and represent it in theirs vested authorities.…
- 2734 Words
- 11 Pages
Powerful Essays -
ii) The invitation must be made by or on behalf of the company or in relation to an intended company;…
- 2863 Words
- 12 Pages
Powerful Essays