Question

The first step towards incorporation of a company is -

• A. To print MOA and AOA
• B. To have certificate of incorporation
• C. To adopt a suitable name
• D. To appoint director

Answer 1

Answer: (C)

To adopt a suitable name

The first and foremost task in the direction of formation of company is the selection of a name to be given to the proposed company. Having decided to launch a company, the promoter has to select a name for it and submit an application to the registrar of companies of the state in which the registered office of the company is to be situated, for its approval. The proposed name may be approved if it is not considered undesirable. It may happen that another company exists with the same name or a very similar name or the preferred name is misleading, say, to suggest that the company is in a particular business when it is not accepted but some alternate name may be approved. Therefore, three names, in order of their priority are given in the application to the Registrar of Companies before formation of company.