Formation of Company In the formation of a public limited company having share capital, mainly four stages are involved namely: Promotion Incorporation Capital Subscriptions, and Commencement of business or trading certificate. In the case of the formation of a private company, only the first two stages are involved, because, a private company can commence its business immediately after securing the certificate of incorporation from the Registrar of companies. But in the case of formation of a public company, having share capital, there is need for the promoters to secure from the Registrar, the certificate to commence business in addition to the certificate o~ incorporation. 1. Promotion of Company The person or persons who undertake responsibility of bring the company into existence are called' Promoters . In other words, the work of promotion is done by a person called "Promoter" or group of persons called "Promoters". Pro...