What Are The Stages In The Formation Of A Company In Pakistan Company Law?


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Mehreen Misbah Profile
Mehreen Misbah answered
Usually it takes a lot of funding and a ton of efforts to establish a business. In the regard of forming a particular company, there are several steps that need to be undertaken for the company to be formally and properly established. The first step is promotion in which the promoters of the company have to formulate and file all the necessary documents with the Registrar that include the Memorandum of Association, the Articles of Association, Statement of nominal capital and a statutory declaration by an advocate. The next step is the incorporation or the carriage of the formal registration process of the company that gives it a recognizable status in the formal business sector. Following the incorporation stage is the step of raising capital. This step is facilitated by the second step as the second step gives a degree of credibility to the company and makes it eligible for being granted loans as capital. Last but not the least, it is the official start of the business that is the end of the elementary steps of forming a company but is the beginning of the company's interaction with its clientèle.

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