C.I.A.

3 ASSIGNMENT
BUSINESS LAWAND ETHICS
TOPIC:- FORMATION OF
COMPANY
JUVERIA WAJIH
(120420685014)
SAKINA SYED
ASADULLAH(120420685015)
LAHARI (120420685016)

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 INCORPORATION OF
COMPANY
CAPITAL
SUBSCRIPTION
PRESENTATION
COMMENCMENT OF
OBJECTIVES BUSINESS

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 MEANING OF COMPANY:- The word ‘company’
is derived from the Latin word Com Panis (Com
means ‘With or together’ and Panis means ‘Bread’),
and it originally referred to an association of persons
who took their meals together.
INCORPORATION
• In terms of the Companies Act, 2013 a “company” OF COMPANY
means a company incorporated under this Act or
under any previous company law [Section 2 (68)]

 MEANING OF INC OF COMPANY:- It is the

registration that brings a company into existence. A
company is legally constituted on being duly
registered under the Act and after the issue of
Certificate of Incorporation by the Registrar of
Companies.

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STEPS BEFORE PROCEEDING WITH THE PROCEDURE OF FILLING
DOCUMENTS:-
1. DIN(Directors Identification Number) HAS TO BE OBTAINED
2. DIGITAL SIGNATURES OF THE PROMOTERS
3. BOTH DIN AND DIGITAL SIGNATURES WILL BE REGISTERED WITH
MCA(ministry of corporate affairs) PORTAL.

After the verification and registration following steps will be taken:-

1. AVAILABILITY OF NAME
2. MINIMUM PAID UP CAPITAL
3. FORMALITIES TO OBTAIN CERTIFICATE
OF INCORPORATION:-

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4. DOCUMENTS TO BE FILED WITH THE REGISTRAR:-
i. Memorandum Of Association
ii. Articles of Association
iii. Vetting , Printing , Stamping and Signing of MOA and AOA
iv. Dating of Memorandum and Article
v. Copy of proposed Agreement
vi. Power of attorney
vii. Consent of directors
viii.Particulars of directors along with DIN
ix. Filling of agreement
x. Notice of registered address must also be made
xi. Statutory declaration of compliance
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CERTIFICATE OF INCORPORATION:-
On registration, the registrar will issue a certificate of incorporation in Form INC-
11,whereby he certifies that the company is incorporated and in the case of a
limited company , that the company is limited.

CONCLUSIVENESS OF THE CERTIFICATE OF INCORPORATION:-

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 MEANING OF CAPITAL SUBSCRIPTION:-
• When a company has been registered and has
received certificate of incorporation, it is
ready for floatation i.e it can go ahead with
CAPITAL
raising capital necessary to commence SUBSCRIPTION
business and to carry on its operations
satisfactory
 The companies Act requires every public company
to take either of the following two steps
1. Issue a Prospectus if public is to be invited
to subscribe to its share capital, or
2. File a Statement in Lieu of Prospectus in
case capital has been arranged privately

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 The following steps are required for raising funds from the
public:
i. CySEC Approval: CySEC (Securities and Exchange
Board of Cyprus)
ii. Filing of Prospectus
iii.Appointment of Bankers, Brokers, Underwriters:
iv. Minimum Subscription
v. Application to Stock Exchange:
vi. Allotment of Shares

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Under the previous Act of 1956, a private
company or company having no share capital
can start business right from the date of its
COMMENCEMENT
incorporation . Both public and private OF BUSINESS
company will have to obtain certificate of
commencement of business.

Certificate to commence business is

conclusive evidence:-
The registrar on perusal of the declaration
in e-form INC 21 shall certify that the
company is entitled to commence business
and to exercise borrowing powers. PAGE 9
Procedure for obtaining certificate of commencement of business
Company shall file the following documents with the registrar of companies
according to sec 11:-
1. A declaration to be supported with the documents attached with the e-form INC 21
2. Requirement to subscribe minimum capital
3. Filing of the notice for situation of the registered office with the ROC
4. Penalty for default in obtaining certificate of commencement of business

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SOME EXAMPLES OF INC. COMPANIES

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