Question

Write short answer for the following.
Explain the stages in the formation of private limited company.

Answer 1

A Private limited company is a business entity regarded as an artificial person where the funds for running the business is raised through issuing shares to public and the shares of the company's stock can be bought and sold by private shareholders.

The stages require for the formation of a private limited company are:

1. Planning

2. Feasibility analysis

3. Incorporation

a) Naming of the company

b) Filling up Registration Form

c) Preparing documents and submitting for registration

d) Obtaining commencement certificate

4. Flotation Stage