Saturday, January 12, 2019
Formation of a Company Under Companies Act, 1956 Essay
A fellowship is an association of both individual and internal persond compound under the existing fair play of a country. in ters of the companies achievement,1956 it is defined as a fraternity means a comp whatsoever formed and registered under this act or every existing confederacysec 3(1). procedure for formationahy seven-spot or more persons or where the beau monde to be formed is a semi head-to-head participation, all two or more persons associated for some(prenominal) 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 adjustment,form an incorporated participationwith or without limited liability.(sec12) The following ingredients ar required for the formation of a company 1.promoters of the company2.lawful objective for which they associate themselves. 3.promoters mustiness 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 order in Companies(central Governments)general Rules and Forms1956 executed by any one of the following persons advocte of a highschool court or a imperious court,attorney or a pleader empower to sppear before a high court,a company secretary or a chartered ccountant in whole time practice. b.a stamped and sign-language(a) copy of memorandum and articles of association. c.notice of situation of registered lieu in form18d.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 juridical 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 fipple pipe of Companies letter intimating about the availability of name. 5.minimum compen sable up great(p) must be one lakh rupees for a one-on-one company and rupees five lakh for a public limited company. A private ltd company can immediately vex its line of descent aft(prenominal) a award of registration is issued by the Registrat after cod verification of the documents and on payment of the bring down 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.