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Formation of Legal Document of Company and Partnership

Acknowledgement

In the making of Formation of Legal Document of Company and Partnership in Pakistan project report of Business and Corporate Law on the topic of incorporation and basic legal documents we would like to thank Allah Almighty without whose blessings we would have ever been able to complete this project.

I am indebted to many of my class fellows for the support and knowledge sharing for completing the project. I am thankful to my honorable Professor for providing the opportunity for carrying out a purely practical project.

Dedication

This project is dedicated to my father, who taught me that the best kind of knowledge to have is that which is learned for betterment of others. It is also dedicated to my mother, who taught me that even the largest task can be accomplished if it is done one step at a time.

Executive Summary

This project is related to the subject of business and corporate law and the purpose of this project was to understand the whole process of Formation of a Company and its Basic Legal Documents in Pakistan. The project also includes a partnership deed in the end. The project has been divided into three sections.

  • The first section includes the process of formation of a company.
  • The second section contains the memorandum and articles of association.
  • The third section contains the partnership deed.

I have made sure that all the learning objectives of this project are accomplished.

Formation of Legal Document of Company and Partnership

PART 1

FORMATION OF COMPANY

Definition as given in Companies Ordinance 1984

“Company means a company formed and registered under this ordinance or an existing company.”

STAGES IN THE FORMATION OF A COMPANY

It is very easy to establish a sole proprietorship business or a partnership firm as there is a few regulations to meet. But for the establishment of a company, a lot of formalities are to be complied with. The registration of the company is mandatory before starting its operation. The formation of a company, right from the origin of idea to establish a company goes through four different stages, like

Stage –I           Promotion

Stage- II          Incorporation

Stage- III        Raising of Capital

Stage- IV        Commencement of Business

The first two stages are necessary for both the formation of a private company and a public company whereas the last two stages are involved in the formation of a public company only.

Stage – I

  • PROMOTION

Promotion of a business simply refers to all those activities that are required to be undertaken to establish a new business unit for manufacturing or distribution of any product or provide any service to the people. It starts with conceiving an idea of business or discovers an opportunity for doing a business, assess its feasibility and then take the necessary steps to launch the business unit. This involves ascertaining as to whether all the basic requirements such as land, building, raw material, machine, equipment etc. are available or not. If they are available one can assemble them, arrange the necessary funds and set up the business unit to give shape to the initial idea of establishing the business. The whole process is called business ‘promotion’ and the person who does it is called the ‘promoter’.

Before knowing the various stages of promotion of a joint stock company let us discuss about the role and importance of promoters.

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