Formation of Joint Stock Company

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Joint Stock Company involves a lengthy legal procedure. Its registration with the Register of Companies is obligatory, before it can commence its business.

Stages in the Formation of a Joint Stock Company

The establishments of a company, a lot of formalities are to be complied with. The registration of the company is mandatory before starting its operation. To establish a company goes through four different stages:

Stages in the formation of a Joint Stock Company

Stages in the Formation of a Joint Stock Company

Stages in the formation of a Joint Stock Company

Promotion:

Promotion of a business means to all those activities that are required to be undertaken to establish a new business unit for manufacturing or distribution of any product or provide any service to the people.

  • Starts with conceiving an idea of business or discovers an opportunity for doing a business.

  • Involves ascertain as to whether all the basic requirements such as land, building, raw material, machine, equipments etc. are available or not. T

  • Whole process is called business ‘promotion’ and the person who does it is called the ‘promoter’.

Role and importance of promoter:

  • Promoter is a person or group of persons who conceive the idea of setting up a new business

  • It takes necessary steps to arrange the basic requirements and establish a business, or company and put into operation.

  • Play an essential role in the promotion of a company.

  • Conceives the idea of business enterprise and analyses its prospects.

  • Works out a tentative scheme of organisation, brings together the requisite men, material, machines and money and starts the enterprise.

Role and importance of promoter

Role and Importance of Promoter

Role and importance of promoter