How did initial shareholders get together for business?

Before starting the business, all five of the initial shareholders were working together as
colleagues in a renowned textile company. As they had gained experience in the textile industry
so they decided to start a business of their own and started planning for the business and
collecting their capital investments for the business.
What the business will be?
First thing to be decided was to decide which industry to select. For that we decided to operate in
textile. As Pakistan is an agricultural so any business related directly or indirectly to agriculture
should be a natural choice. In this area there were many options but as Pakistan is world famous
for its textile industry and this is a very swiftly growing industry with a very wide range of
consumer markets. Other than that we also had some experience of working in the very industry.
Arrangement for resources
The resources needed for the business included:
Capital
To start the business all the capital was invested in business by all 5 of initial shareholders
Land
Using the capital invested in the business a land in Quaid-e-Azam industrial estate was
purchased to set the manufacturing unit
Machinery
All the machinery and equipment to run the business were purchased from a Japanese company
Expertise
Directorial positions were held by all current shareholders and one of them held the position of
CEO and they used their expertise from their previous work experience and also hire staff to
make the business run smoothly.
Steps for incorporation of the company
Following are the steps to incorporate the company:
Step 1: Approval of Company Name
The first step of company incorporation in Pakistan was to choose the company’s name. It was
important to devise a unique company name that would set us apart from the rest in the
industry.so we decided to choose the name “Luxena” as it was unique and also was quite good
for a luxury textile manufacturing company.
Step 2: Submission of Documents
Once the company name got the approval, we submitted the incorporation documents to the
Securities and Exchange Commission of Pakistan (SECP) including article of association,
memorandum of association, forms 1, 29, 21 and 38.
Step 3: Certificate of Incorporation
After submitting the documents, the SECP evaluated them. They were checked for their validity.
A digital signature was granted by the National Institutional Facilitation Technologies (NIFT).
They also issued the certificate of incorporation.
Step 4: Deposit of Shares
After the registration, shareholders deposited their corresponding amount of shares to the
company’s bank account.
Step 5: Registration of Income, Sales, and Professional Taxes
The last step of company registration was the registration with the Federal Board of Revenue
(FBR) and issuance of a national tax number (NTN). A sales tax registration number was also
registered.