1. Introduction to company ,types
Of company
&
Formation of company

2. Company –its meaning
COMPANY is a voluntary association of persons formed for the purpose of doing business, having a distinct name and limited liability. It is a juristic person having a separate legal entity distinct from its members who constitute it, capable of rights and duties of its own and endowed with the potential of perpetual succession.

3. Characteristics of a company
Incorporated association
Separate legal entity
Limited liability
Separate property
Perpetual succession
Transferability of shares
Common seal
Capacity to sue and be sued

4. Advantages of incorporation
Artificial legal Person
Limited liability
Perpetual succession
Transferability of shares
Infinite Membership
Permanency of capital & protection to creditors
Mobilization of Huge resources
Separate Property
Ease in Control & management
Capacity to sue

5. disadvantages of incorporation
Formalities & Expenses
Corporate Disclosures
Divorce of control from Ownership
Loss of privacy
Detailed winding up procedure
Control by few
Greater social responsibility
More tax burden in certain cases
Possibility off frauds

6. opc public private opc public private opc private public
companies
incorporated
Chartered
Statutory
unincorporated
Registered companies
Companies limited by guarantee
Unlimited limited companies
Companies limited by shares
opc
public
private
opc
public
private
opc
private
public

11. Private and public companies
Private companies
It’s a very suitable form for carrying on the business of the family & small concerns as the minimum numbers required is only 2. [Sec. 2(68)] of the companies act deals with the definition of private company that provides that every private company should have a minimum paid up capital of 1 lakh rupees.
The definition of the private company is quoted u/s 2(28) of the Companies act, it means a company which has a minimum paid up capital of one lakh rupees or such higher paid up capital as may be prescribed and by its articles:-

12. Restricts -- the right to transfer its shares
Limits -- the no. of its members to two hundred
Prohibits – any invitation to the public to subscribe for any shares or debentures of the company
Prohibits – nay invitation or acceptance of deposits from person other than its members , directors or there relatives.

13. Public companies
According to section2(71) of the companies act A Public Company means a company which :-
1 . Is not a private company
2. has a minimum paid up capital of five lakh rupees or such higher paid up capital as may be prescribed
3.is a private company which is subsidiary of a public company.

14. Government companies
Section 2(45) of the companies act defines a government company to mean any company in which not less than 51% of the paid up capital is held by:
The central government
the state government or governments
Partly by the central government and partly by one or more state government, or by any state government or governments, or partly by the central govt. & partly by one or more state governments.

15. Foreign companies
It means a company incorporated outside India and having a place of business in India. Accordingly a company which is incorporated outside India and employs agents in India but has no office or does not establish a place of business in India will not be a foreign company .
According to section 2(42) of companies act 2013, a foreign company is one incorporated outside India which established a place of business within India after the commencement of this act, or which had a place of business within India before the commencement of this act and continues to have the same at the commencement of this act .

16. One person company GROUP
One person company is a new concept in India under the companies act 2013section2(62) of the companies act 2013 defines that one person company means a company which has one person as a member
One person company is required to identify in its name in bracket as one person company after its name.
It means a group of two or mo0re individuals associations firms or bodies corporate or any combination thereof, which exercises or is in a position to exercise or has the object of exercising control over any body corporate firm or trust.
GROUP

17. Public financial institutions
The companies Act provides that each of the following institution shall be deemed to be public financial institution for this purpose of this act namely :
The industrial credit and investment corporation of India limited
The industrial development bank of India
The life insurance corporation of India
The unit trust of India
The infrastructure development finance company limited, a company formed and registered under this act .

18. Stages in formation of company
Formation of a company
Stages in formation of company

19. promotion Function of a promoter
It’s the 1st and important stage. Promotion is the process of organizing and planning the finances of a business enterprise under the corporate form. The persons who undertake the task of promotion are called promoters.
Discovery of idea
Detailed investigation
assembling resources
Preparing preliminary documents
Entering into preliminary contracts
Naming a company
Appointment of bankers, brokers, solicitors & underwriters
Function of a promoter

20. Memorandum of association
INCORPORATION
A company comes into existence when a no. of persons come together with a view to exploit some business opportunity. they may form an incorporated company for a lawful purpose by subscribing their names to the Memorandum of Association and complying to the other requirements in respect of registration like availability of name ,ensuring the minimum paid up capital ,formalities to obtain certificate of incorporation there are various documents which needs to be filled with the registrar. 1
It’s the charter of the company. This includes its objectives, its name, the address of its registered office, the capital which the company is authorized to raise etc.
Memorandum of association

21. Articles of association2
This contains the rules and regulations relating to the internal management of the company.
vetting of memorandum, articles, printing, stationary, and signing the same
printing of memorandum and articles
Stamping of memorandum and articles
Signing of memorandum and articles
Dating of memorandum and articles
Copy of proposed agreement
power of attorney
Consent of the directors
Particulars of directors along with din
Filling of agreement
Notice of registered address must also be made
Statuary declaration of compliance
Articles of association

22. Certificate of incorporation
The legal effect of incorporation is as under :-
A company becomes a body corporate distinct from its members
A company has a perpetual succession and common seal
A company can sue and can be sued in its own name
A company has a right to hold on and alienate its own property
Company's debts and obligations are the liabilities of the company only and cant be enforced against the individual shareholders.

23. Capital subscription Commencement of Business
When a company has been registered and has received certificate of incorporation it is ready for flotation that means it can go ahead with raising capital necessary to commence business and to carry on its operations satisfactory.
Commencement of Business
Companies can commence their business after obtaining the certificate of commencement of business and to obtain the same there are various
Documents which are needed to be filed with the registrar of companies .like list of members of company , certified copy of MOA & AOA….. etc