Stages : formation of a Joint Stock Company soeaetioa 2 ny 3 Sakae (activities which are necessary for bringing the company in to existence) Promoter: (takes all preliminary work for starting a new company -promoter can be a person,a firman association or even a company) tii the idea of setting up a business) 2.Feasibility studies:(detailed investigation of the profitability proposed activity -he undertakes feasibility studies such as technical feasibility, financial feasibility, economic feasibility...) 3.Name approval:(selecting name for the company & submit application to the registrar of companies for its approval) 4.Preparing prelimi : Memorandum of Association, Articles of Association, Prospectus or Statement in lieu of prospectus, list of directors, a written consent of directors, a statement of authorized capital etc..) 5.Eixing up signatories to the Memorandum of Association:(Usually people signing memorandum are the first Directors of Company) 6 Appointment of Professionals: bankers, auditors, underwriters ....) inity: (conceives (registering with the Registrar of Joint Stock ‘Companies -with documents such as Articles of Association, Memorandum of Association etc. Registrar will give a CIN (Corporate Identity. Number) - Registrar of Companies issue a certificate of incorporation, {tis called the birth. certificate of the company) ‘A public company can raise the required funds from the public by means of issue of shares and debentures -For this issue a prospectus and follow various other formalities ) Formalities for Capital (approval from SEBI - statement in lieu of prospectus with the Registrar - Appointment of Bankers, Brokers and Underwriters - ~*minimum subscription (minimum number of — shares before going ahead with the allotment of shares -minimum subscription is 90% of the size of the issue -application to at least one stock exchange) DOCUMENTS ; FORMATION OF A COMPANY fundamental document or charter of a ‘company - it defines the objectives ) nts of Memorandum ‘a, Name clause: name of the company approved by the Registrar of Companies -it should not be identical with the name of an existing co.) 1b. Registered office clause: (name of the state in which the registered office is situated) +c. Object lause:( objective of company ) 4. Liability clause:( liability of the members) ‘¢. Capital lause:maximum capital with which the ‘company is to be incorporated) £, Subscription clause:(name of the signatories to the memorandum of Association rules and regulations for the management of internal affairs of the company (document issued by public ‘companies inviting the public to subscribe for shares ‘or debentures of the company) *Statement in Liew of Prospectus:(issued by pubic company to raise capital privately) A private company does not require a prospectus or statement in lieu of prospectus {agreement to act as director & to buy and pay for qualification shares) Qualification shares(shares issued to Directors) WY agreement made by the company with its directors/managers etc..) 5: Staory decoration (satng all he legal requirements are fulfilled for registration) Basis ‘Memorandum of — Articles of Association Association Objectives | Objectives of rules of internal ‘Company is formed | management Position [main document _| subsidiary doc. Relationship | with outsiders with members Validity | Acts beyond the [Acts beyond Memorandum are | Articles can be valid ratified Necessity | Every company has |not compulsory to file for a public Co. ‘One Person Company - OPC:(company with only ‘one person as a member -avails all the benefits of a pvt.co. - implemented under of Companies Act, 2013 -Only an Indian citizen and resident in India can start cannot carry out Non-Banking Financial Investment activities -cannot be incorporated or converted into a /company) Prepared by ANFAS. V.S, HSST Commerce, Thrissur