The formation of a company is three stages process entailing
1. Promotion
2. Registration
3. Commencement of business
1. Promoting:
The process by which a company is incorporated or put into a shape as a corporate body is the promotion part of the job
2. Registration:
When a company is formed, the promoters need to get that registered with the registrar of joint stock companies & firm. In case of private company not less than two & not more than fifty members & incase of public company not less than seven but no maximum has been fixed. It may have any number of members. Before the registration of the company the promoters have to select its name & apply to the registrar for the same in plain paper with a fee of tk.100 for each name.
After obtaining the name clearance the promoters shall prepare& print the memorandum & Articles’ of association which shall be signed by them before at least two witness. The company must have a permanent head office known as its registered office. After the company is registered, the registrar issue a certificate called the certificate of incorporation, which is vital document for the company. From the date of registration the company is a corporate personality and will have its existence.