Starting a company is one of the most challenging and rewarding jobs you will ever do. Here in this article let us guide you on how you can build a company and some important stages in the formation of a company and some brilliant steps in the formation of a company.
All Important Stages in the Formation of a Company
1. Proper Research
Maybe you already have a business idea and now it’s time to balance it with little reality. You have to check if your business plan has the potential to succeed after the formation of a company. And, if you find that something is wrong, it is better to think about the other options you have. Now, if your research is complete and you find your idea is going to be successful, choose the name of the company.
2. Choose the Name of the Company
Choosing a company name is one of the first steps in the formation of a company. and, it is a very important key to the future success of your company. So, take time and think a catchy name. If you have any doubt, take help from a professional. And, to avoid any legal trouble, always think a unique name which is completely different from other companies. The name of the company is too important as it shows the services you provide to the public.
3. Promotion of a Company
A new business or anything does not come into the limelight on its own. You or your group have to promote it while it is new. The process of business promotion starts with the conceiving of an idea and ends with when the idea is translated into action.
In order to promote your company, you have to take help from a business promoter. A business promoter us is a creator of wealth and an economic prophet. And a promoter knows everything about the process of the formation of a company. He even knows the requirement needed to bring the enterprise into existence.
4. Registration of a Company
Your company is not valid legally unless you register it under the Companies Act. It is one of the important steps in formation of a company. In order to register your company, you have to fill many important documents with the registrar of companies are as follows.
In the memorandum of Association, you have to take signs of at least 7 people and 2 in case of a private company. And the memorandum should be properly stamped.
5. Certificate of Incorporation
Certificate of Incorporation is an important thing in formation of a company. After the registration of the Memorandum of Association, Articles of association and, various other documents, the register will usually issue a certificate known as “Certificate of Incorporation”. This certificate is proof that the company is incorporated and all the requirements have been fulfilled. And now you have to fulfil the fifth step during formation of a company.
6. Certificate of Commencement of Business
After getting the certificate of incorporation, the company can start its business. It then issues a prospectus for inviting the public to subscribe to its share capital. It fixes the minimum subscription and sells the minimum number of shares mentioned in the prospectus.
After selling all the required number of shares, the company usually sents a certificate to the registrar along with a letter from the bank stating that all the money is received.
The registrar checks all the documents and if he is satisfied, he issues a certificate known as ” Certificate of Commencement of Business”.
7. Company Location Set Up
You have completed most of steps in the formation of a company. Now, it is the time to set up a location where you will lead your operation. you will also need to think about equipment, overall set up and make sure the location is ideal for the type of company you are building.
8. Hire Employee
In the last but not the least steps in the formation of a company, you have to hire employees. As you already know, you can’t do all the stuffs alone. Therefore, you need to find someone who can take responsibility and quite excellent in his particular field. So, after hiring employees, always work as a team to get success.
As you can see, building a company is a little hard but if you follow all the above-mentioned steps, it usually becomes too simple. So why are you waiting? If you have a plan in your mind just do it now.
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