Question -
Answer -
The following stages are there in the formation of a company:
1. Promotion: This step deals with idea generation and implementing it in the form of a company.
2. Incorporation: This stage consists of applying for the certificate of incorporation and obtaining the same, after the certificate is received a company becomes a valid entity in the books of law.
3. Issuing of shares and debentures: This stage involves raising capital in the form of issuing stocks and debentures to the public.
4. Business commencement: In this stage the formalities are completed and business are commenced by the company.