M . N . DEGREE COLLAGE
Kammagondanahalli, Bangalore – 560015.
SUBJECT
Company Law and Administration.
TOPIC :
Formation of Company Act 2013
Presented By –
SHALINI.D
3rd Semester B.com

INTRODUCTION
• Company is a association formed
for the purpose of doing a business
having a district name and limited
liability.
• The company is managed on
behalf of the shareholders by the
Board of Directors.

JOINTSTOCKCOMPANY
 Joint Stock Company refers to a company having a
joint stock or capital that is divided into units of
ownership interest , such as share which may by
transferred without consent of the other
shareholders.
 According to H.L. Haney , “A Joint Stock Company
is a voluntary association of individual for profits ,
having its capital divided into transferrable shares
the condition of membership”.

FORMATION OF A COMPANY
 Stage 1- Promotion
 PROMOTION of a business refers
to all those activities that are
to be undertaken performed to
establish a new business.
 Promotion includes conceiving
ideas , ascertaining all basic
requirements and arranging
to set up the business units.
This whole process is called
promotion and person who does this
called promoter.

Stage2-INCPORATION
 A joint stock company cannot be started without
registration .
 Company comes to existence only when it is
registered with Registrar of a company .
 Steps to be followed to register a company are –
1. Approval of names .
2. Filling of documents such as MOA and AOA.
3. Payment of registration fees.

STAGE3- CAPITALRAISING
 In case of a private limited company the capital is
raise from members or banks and other sources.
 In public company the capital is raised from
public through shares.
 To issue shares company should draft prospectus
and get it inspected by SEBI {STOCK EXCHANGE
BOARD OF INDIA} and follow all guidelines laid
down by SEBI.

STAGE4- COMMENCEMENT OF
BUSINESS.
 Private ltd. Company can start its business
after registration (stage3).
 Public co. needs a certificate called
certificate of commencement of business .
 Certificate of commencement is obtained
from registrar of company.

CONCLUSION
The Companies Act , 2013 has taken
a great initiative in establishing good
corporate governance in India.
Various changes have been
introduction through the said Act for
establishing transparency ,
accountability and independence in
the operations of a company.