COMPANY FORMATION

Promotion - taking preliminary steps

and effective steps to implement a
business proposition
Incorporation - formation and
registration under CA 1956
Floatation -mobilization of financial
resources
COB - commencing business
including borrowing/ lending
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Promoter
Not defined under CA 1956
Defined in SEBI Takeover Code
Also in Clause 67 of Concept
Paper on New CA (same as SEBI
(Takeover) Code

INCORPORATION
Pre-incorporation

Promoters`Personal
liability

Company
Incorporated
(Corporate
Personality)

`Novation of Contract`
by new Company

Steps for Incorporation

Name Approval by ROC (Validity 3 +
3 months)
Preparation of draft MOA and AOA
Printing, Signature and stamping
thereof
Power of Attorney
Filing of prescribed documents with
ROC along with Registration and
Filing fees
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COI and COB

COI Conclusive evidence
Commencement of Business [COB]
Not required for Pvt. Ltd
Public Ltd shall obtain COB from
ROC (even before borrowing)
Filing of prescribed documents with
ROC for obtaining COB
o Declaration by Dir/CS/CSP
o Director`s Declaration re:
qualification shares, if any
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