Company formation is the process of registering a business as a limited company at Companies House. As a result, the business becomes a distinct legal entity. The process is also referred to as 'company incorporation' and 'company registration'.

 

There are four main steps involved when it comes to company formation. Yes, four it is not merely having a lot of money. If you are curious as to how a company is formed for your studied or your own personal reasons then in this article we have outlined the four significant steps involved in this most impressive experience.

 

4 Steps In The Formation Of A Company

 

1 – Promotion Of A Company 

This is most important in forming a company. Having a promoter will be the first step in your company formation, and it is here where the talks and ideas are brought forth about building the company.

 

2 – Registration Of A Company 

This is the most arduous part of the formation process as there is a lot of data, paperwork, talks with people, memorandums, declarations and other procedures that must be involved. In all honesty, this par alone can have its own article written about it because of how much work this step involves.

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3 – Certificate of Incorporation

After the individual(s) have been able to hand in all the proper paperwork the individual will be given a certificate proving and showing that their business is legit.

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4 – Certificate of Commencement of Business

After a person has received the certificate of Incorporation, they are now able to start their own business.