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What is company formation. Explain in brief a) Capital raising stage. b) Commencement of business stage. |
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Answer» formation is the process of REGISTERING a business as a limited company at Companies HOUSE. As a result, the business becomes a distinct legal ENTITY. a)Capital raising STAGE:When looking to expand, a company can raise additional capital by applying for a new loan or opening a line of credit. This type of funding is referred to as debt capital because it involves borrowing money under a contractual agreement to repay the funds at a later date.b)Commencement of business stage:Certificate of Commencement of Businessunder Companies Act, 2013. A PUBLIC and Private Limited company having share capital cannot commence business until it has obtained the certificate of commencement of business (COB) from the concerned Registrar of Companies.I hope it helps |
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