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Gopika Juneja, Lovely Professional University Unit 4: Formation of Company

Unit 4: Formation of Company Notes

CONTENTS
Objectives
Introduction

4.1 Formation of Company
4.1.1 Promotion
4.1.2 Objectives

4.1.3 Floatation
4.2 Availability of Company Name
4.3 Certificate of Incorporation/Consequences of Incorporation
4.4 Pre-incorporation or Preliminary Contracts
4.5 Provisional Contracts

4.6 Form of Contracts made by Companies
4.7 Summary
4.8 Keywords

4.9 Review Questions
4.10 Further Readings

Objectives

After studying this unit, you will be able to:
Explain the process of formation of a company;
Describe pre-incorporation of company;

Elaborate upon provisional contracts.

Introduction

A declaration by an advocate of the Supreme Court or of a High Court, an attorney or a pleader
entitled to appear before a High Court or [“a secretary or a chartered accountant, in whole-time
practice in India”] who is engaged in the formation of a company, or by a person named in the
articles as a director, manager or secretary of the company, that all the requirements of this Act
and the rules there under have been complied with in respect of registration and matters precedent
and incidental thereto, shall be filed with the Registrar; and the Registrar may accept such a
declaration as sufficient evidence of such compliance.

4.1 Formation of Company

The whole process of formation of a company may be roughly divided, for convenience, into
three parts i.e., Promotion, Registration and Floatation.

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