TABLE OF CONTENT

1. CORPORATE AND BUSINESS LAW

I. INTRODUCTION
II. DEFINATION
III. TYPES OF BUSINESS
IV. INCORPOTION OF A COMPANY
 CORPORATE AND BUSINESS LAW
1) INTRODUCTION
The common understanding of law is that it consists of rules and regulations established
and enforced by a governing body. In the United States, the governing body is a
combination of federal, state, and local governments. While the above definition is
accurate, it is important to understand the source or genesis of societal law. Laws are also
commonly understood as manifestations of societal norms or beliefs. That is, if society
believes that certain rights or procedures should be in place, the representative lawmakers
act to bring about a rule effectuating that societal norm in pursuit of the orderly
administration of that society. Corporate law refers to the laws, rules, and regulations that
pertain to corporations. The laws involved regulate the rights and obligations involved
with the business activities of a corporation, including formation, ownership, operation,
and management. Our Company
2) DEFINATION
Business law is also known as commercial or mercantile law. It is branch of law which
govern and regulates trade & commerce. It deals with rights and obligation arriving out
business transactions in respect of mercantile property.

 TYPES OF BUSINESS
A business entity is an organization that uses economic resources to provide goods or
services to customers in exchange for money or other goods and services. There are three major
types of business:

i. Service business
ii. Merchandising business
iii. Manufacturing business

 Define Public company

A public limited company is made up of
shareholders. In other words a public company, means a company
which by its article does not limit the numbers of its member and
does not prohibit any invitation to the public to subscribe for any
share or debenture, of the company.
  Define private company
A private company is one which, by its article of association
restricts the right to transfer its share, limits the maximum number
of its member to fifty.
 Major Difference Between Public And
Private limited Public limited
Minimum numbers of members

2 7
Maximum number of member
50 Unlimited
Number of directors

At least 2 At least 3

Transferability of shares

Complete restriction No restriction

Issue of prospectus
Prohibited Issue Prospectus

3) INCORPORATION OF A COMPANY
The incorporation of a company refers to the legal process that is used to form a
corporate entity or a company. An incorporated company is a separate legal entity on its own,
recognized by law. A group of seven or more people can come together so as to form a public
company whereas, only two are needed to form a private company. The following steps involved
in the incorporation of company.
  Promoters:
A person who has control over the affairs of the company, directly or indirectly whether as a
shareholder, director.

 Function of promoters

 Business idea

 Investigation

 Preliminary contract

 Preparation for incorporation

 Incorporation of a company

There are two methods for getting a company incorporated:

a) Manual method
b) Online method

 Manual Method:
A company is incorporated traditionally through manual submission of relevant
application and documents in Company Registration Officer.
The promoters must fulfill the following formalities for registration.
 Prior approval
 Name approval
 Submission of document
 Registration fee

 Online Method:
We are using online method for registration and approve the name by SECP of A.H TEXTILE
Company.
Online services of the SECP can be used for incorporation, changes in name, address, object or
status of the company and filing of statutory returns. The following is the procedure for online
incorporation of company.

 User registration
 Company name
 Enter info
 AVAILABILITY OF NAME (STEP=1):
The first step in a company Registration in Pakistan is to make an application to the register of
companies for the availability of name. The application can be made both online and in offline mode but
we using the online method, and normally takes a period of 3 to 4 days before conformation of the
name applied for new company registration in Pakistan.

PEPRATION OF DOCUMENT (STEP#2)

The second step in Company registration procedure in Pakistan is to start preparing document necessary
for the process of company registration. The following are process of company registration in Pakistan.