The following things are required for the formation of a company.

●      Promoters are required.

●      Objectives of the promoters must be laid down.

●      The names of the promoters must be subscribed to the memorandum of the company.

●      The promoters must comply with the Company Act, 1956.

Private companies and public companies having a share capital can immediately start business after the certificate of registration is issued by the registrar. The incorporation of a company takes approximately 35 days in India. Public companies can offer their shares for sale to the public. The minimum share capital for a public company to be incorporated must be INR 50,000. A private company places certain restrictions on ownership.

For the formation of a company, a company passes through the following three stages −

●      Promotional stage

●      Incorporation stage

●      Commencement of business