Following steps should be followed to start a toy manufacturing company
(i) Promotion Promotion stage includes all the steps right from conception of idea to starting the company, till it is formed. It is the process of planning and organising all the resources required to form a company. Promotion involves the discovery of business idea, its investigation and assembling, necessary resources to set up the business. The person who performs all the activities during the promotion stage is known as Promoter. The Promoter conceives the business idea and takes all initiatives to form a company. The promoter can be an individual, a group of persons or an institution.
(ii) Incorporation Incorporation of a company is the second stage in the formation of company. Incorporation refers to the registration of the company under Companies Act, 1956.
The main steps under the incorporation stage
(a) Filling of Necessary Documents Once the registrar approves of the name, the following documents have to be submitted with the registrar
• Memorandum of Association • Articles of Association
• Statement of Authorised Capital
(h) Payment of fees (c) Registration (d) Certificate of Incorporation ,
(iii) Capital Subscription Stage After getting the certificate of incorporation the private companies get formulated and can commence their business activities, but a public limited * company has to perform a third stage to get the certificate of commencement.
(iv) Commencement of Business After subscribing the securities and receiving the minimum subscription, the company applies to the registrar to issue the Certificate of Commencement of Business.
Alongwith the application, a company must file the following document
(i) A declaration that shares payable in cash have been subscribed for and minimum subscription has been received.
(ii) A declaration that every director has paid in cash the application and allotment money on his *
(iii) A declaration thatho money is pending to pay back to the applicants.
(iv) A declaration that above requirements have been complied with. This declaration can be signed by the director or the secretary of the company.
The registrar will verify all the documents and declaration submitted by the company. If he is satisfied with the authenticity or validity of these documents then he will issue a Certificate for Commencement of Business. The company can start its business activities form the date of issue of the certificate.