Companies Act and has obtained a Certificate of Incorporation

A Company is said to have been fondled when it has been registered under the Companies Act and has obtained a Certificate of Incorporation
from the Registrar of Companies. But prior to incorporation, the promoters" have to undertake several steps preparatory to incorporation.
Thus the first two stages in the formation of a company are: 1. Promotion Stage. and 2. Incorporation Stage. A private company and a public company
having no share capital can commence business as soon as it is registered (incorporation). But 1 public company cannot commence business unless it
has obtained a certificate of commencement of business from the Registrar of Companies. Therefore, a public company has to pass two more stages
before it can commence business: 3. Subscription Stage, and 4. Commencement Stage. Thus. a public company having share capital has to pass
through all the four stages e.g. (i) promotion. (ii) incorporating, (iii) capital subscription, and (iv) commencement of business.
We shall discuss all these four stages one by one.
FORMATION OF A PUBLIC COMPANY
briefly the different steps involved in the formation of a Public Company.
The process of formation of a company can be divided into the following stages:
1. Promotion
2. Incorporation"
3. Capital subscription, and
4. Commencement of business. v
Of these, the first two are connected with the formation of private
company and of a public company not having any share capital. They can commence business immediately on incorporation. But a public company
having a share capital has to pass through all the four stages before it can commence business or exercise borrowing powers.