Company Formation In Bangalore, is an artificial person, it has to be formed in accordance with the legal provisions. In India, these legal provisions are provided in the Companies Act, 201 in.
The formation of a company consists of various stages which are as follows:
1. Promotion stage.
2. Insertion stage.
3. Capital subscription stage.
4. Beginning of the business phase.
All these phases are related to the company formation in Bangalore (also known as a public limited company). For the formation of company in Bangalore (also known as a private ltd company), only the first two phases and a part of the third phase are relevant as it can start business immediately after joining and agree to receive money from the signatories to the documents Is a clear number of shares
Therefore, the initial stage of starting a business is not relevant for any private company. Further, such a company will not be able to invite the general public to subscribe to its shares. Therefore, part of the capital subscription stage is not related to it. Let us go through all these stages.
1. Promotion Stage:
The term ‘promotion’ refers to the total amount of activities by which a business enterprise comes into existence. At the stage of promotion of a company, the promoters think of promoting the company and what kind of activities it does.
Promoters can be one person a group of individuals or one or more companies (another company or group of companies to promote a company) very much Becoming popular). Subsequently, relate activities are undertaken to promote the company formation in Bangalore.
These activities are as follows.
i. Identification of business opportunity and type of business to undertake.
ii. Conduct feasibility studies to determine the technical, financial and legal viability of the project being undertake by the company.
iii. Decide to form a company name and get the name approve by the Registrar of Companies.
iv. Obtaining the consent of the persons signing the documents to be submit to the Registrar of Companies for registration of the company. (In case of private company, 2 signatures and in case of public company, 7 signatures are require.)
V. Obtaining the consent of the persons who will act as the first director (required 2 in case of private company and 3 in case of public company).
V. Selection of Professionals who will prepare various relevant documents required for the registration of the company like Memorandum Association f Association, Articles Association f Association, etc. and who will act as the first itors of the company formation in Bangalore.
vii. Preparing relevant documents.
2. Incorporation stage:
The stage of insertion or registration involves filing an application for registration of the company with the concern registrar of the company and getting it register.
In India, every major state in the country has an office of the Registrar of Companies. The concerned registrar is one located in the state where the company registration office is located.
The insertion phase includes the following activities:
i. Filing a registration application with the Registrar of Companies along with relevant documents (Memoranda Association f Association, Articles Association F Association or Table A declaration of acceptance which is a model set of Articles Association f Association,
with the written consent of the propose directors All legal requirements for and documentary proof of payment of registration fee) is a legal declaration.
ii. Verification of application and documents by the Registrar of Companies.
iii. Registration of the company by the Registrar and entering the name of the company in the relevant register if all the requirements are complete.
iv. Issuance of certificate of incorporation by the Registrar of Companies.
On the issue of the certificate of Inc. or Corporation, the company exists as an artificial person.
3. Capital Subscription Stage:
Once a company is register, it proceeds to earn money by allocating share capital to its members.
Initially, shares are allot to individuals who sign documents and agree to subscribe to fixed shares.
After this, a private company can start its own business while a public company must obtain a certificate of business from the concerned Registrar of Companies.
The procedure for subsequent allotment of shares varies for private company and public company. In a private company, subsequent shares are allocate through personal contacts.
Shares may be allot by public issue of shares in a public company.
The general procedure for this is as follows.
i. Filing prospectus with Indian Securities and Exchange Board of India (SEBI).
ii. Obtaining approval from SEBI.
iii. Appoint managers, underwriters and registrars in the issue.
iv. Appointment of bankers to receive application for share with money and broker to promote the issue.
V. Invite the general public (including organizations) to share subscriptions.
V. Upon receipt of the minimum fixed subscription, allocate shares with the advice of the relevant stock exchange where the shares are to be list in the transaction.
However, it is worth mentioning that a public company is not require to disclose its shares in public; It has only eligibility for public issue but no compulsion.
When a public company declares its shares to the public, it is call a publicly taking company. When it does not give its shares to the public, it is call a closely taking company.
4. Start of business stage:
To start a business, a public company has to get a certificate of commencement of business from the Registrar of Companies concerned.
For this purpose, the company needs to submit the following documents:
i. Subscription shares are allocate on a cash basis.
ii. An announcement that all directors have paid cash for the shares they subscribe to.
iii. A declaration, signed by the director or secretary of the company, complies with the above requirements.
Requirements to register a company formation in Bangalore:
The Registrar of Companies verifies the above documents and issues a certificate of commencement of business if all the requirements are as per the provisions of the Companies Act.
Documents required to be submit to the Registrar of Companies are:
Memorandum of Association,
Articles of association,
Consent of the proposed Director,
Copies of the agreement,
Statutory Declaration under Section 7 (i) (b) of the Companies Act, 2013
Documentary proof of payment of registration fee