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Question

A company comes into existence only after its __________.

A
Registration
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B
Promotion
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C
Scrutiny of documents
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D
Allotment of CIN
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Solution

The correct option is A Registration
Formation of a company is a lengthy process. There are major 4 stages to conceptualize the formation of a company:

  • Promotion stage
  • Registration stage
  • Capital subscription stage
  • Commencement of business stage.

Registration is the second stage of the formation of any company. A company is properly constituted only when it is registered under the companies act and the certificate of incorporation is issued by the authority. It is the registration which company brings in to existence.

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