Discuss the role of promoters in the formation of a company

The role of a promoter is as follows :

  1. Discovery a business idea: The promoter identifies the areas of profitable avenues of investment after making preliminary analysis of risk involved, capital required, etc.
  2. Detailed investigation : The promoter undertakes detailed investigation of all aspects of the business with the help of experts/specialists, etc. He prepares a project report on its technical, economical and financial feasibility.
  3. Assembling of resources : After being satisfied about the project, the promoters make contacts for the purchase of land, plant, machines, etc.
  4. Preparing preliminary documents : The promoter
    prepares the essential documents required for the registration of the company.