State the steps involved in the formation of a company under the Companies Act 1994.

Formation of a Company:

2 (two) or more persons (not more than 50) and 7 or more persons (unlimited) may form a Private or a Public Limited Company respectively by subscribing their signature in the Memorandum of Association.

They may form -

A. a Company limited by shares;

B. a Company limited by guarantee;

C. an unlimited Company.

There are 3 stages for formation of a company -
i. Promotion;
ii. Registration;
iii. Commencement of business.

Promotion stages -

 
i. Promoters
ii. Clearance of name
iii. Sponsors' equity
iv. Consent of the Directors
v. Selection of objectives.

Registration:

i. Submission of Memorandum & Articles of Association.
ii. Payment of stamp duty & Registration fees.
iii. Obtaining certificate of incorporation.

Commencement of business:

 1. For a Private Limited Company, the business of the Company can be commenced after
getting the registration i.e. certificate of incorporation.

2. For a Public Limited Company, the Company shall obtain the certificate of
commencement of business from the Registrar.