Hello,

I hope you are doing fine, Formation of a company is a complex activity involving completion of legal formalities and procedures. To fully understand the process one can divide the formalities into three distinct stages, which are:

(i) Promotion;

(ii) Incorporation and

(iii) Subscription of capital.

It is the first stage in the formation of a company. It begins with a person or a group of persons having thought of or conceived a possible future business opportunity and then taking an initiative to give it a practical shape by way of forming a company. Such a person or a group of persons who proceed to form a company are known as promoters of the company.

Promoters not only conceive a business opportunity but also analyze its prospects and bring together the men, materials resources that are necessary for the formation and existence of the company.

I hope you find this information helpful. I wish you all the best for your future.

Good Luck