Since a company is a legal entity, it must be formed and started through legal provisions. In India, these legal provisions have been provided in the Companies Act, 2013. There are different entities and one must choose the entity that suits its business requirement, profits and shareholders. One of the best entities is starting limited company.
Here are different stages of starting a limited company. Here are the steps of starting a limited company:
1. Promotion
It refers to the sum of all activities through which a company is brought into existence. Further, it involves identification of business opportunities, feasibility study, assembling and preparation of necessary documents, and arranging initial financial resources. All these works are done by the promoters. They performed tasks like investigation, assembling, contracting with relevant parties, collating documents, and incurring preliminary expenses, among others.
2. Incorporation
After the promotion stage is completed, the incorporation stage comes next. It involves getting it registered with the concerned Registrar of Companies. It involves applying for incorporation and filing of documents. These include the following:
- Memorandum of Association
- Articles of Association
- written consent of proposed directors
- copy of the letter of approval of name of the company issued
- address of the registered office of the company
- details of the agreement and statutory declaration
After submitting these requirements, payment of fees for registration of the company will follow. You can then issue the certificate of incorporation after completing everything.
3. Capital Subscription
After a company is incorporated, it proceeds to get money through allotment of share capital to members. In the initial stage, shares are allotted to persons who are signatories to documents and have agreed to subscribe top employee monitoring software to the prescribed number of shares. In a private company, a subsequent number of shares are allotted through personal contacts. There are various options available for raising funds for a limited company.
The subscribed capital of the company is a part of issued for which the shareholders of the company have agreed to contribute the amount. After all, this limited company can commence its business.
Starting A Limited Company Made Easy
All these stages of starting a limited company can make you learn and help you to start a new limited company. 3E Accounting India is always ready to help you with the company registration process. We have an experienced team who can guide you with all the procedures and steps and help you to commence a new limited company. It knows everything about India company incorporation and will save your time and resources to quickly get your operations started.
