The businesses that exist in the current era not only require funds to keep functioning but also maintain an upper hand when it comes to dealing with the constant technological changes. For anyone hoping to form a company, it’s crucial to remember that there are several steps present between the inception of an idea to build a company and down to the execution of actually forming one. In this article, we will be elaborating on those very stages so that you can determine where to start.
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Steps Leading to the Formation of a Company
Regardless of whether it’s company formation in Turkey you’re thinking about or anywhere else, there are four main stages involved in the formation of a company. They are as follows:
Promotion of a Company
The very first step in company formation is the promotion of the company, which involves acquiring promoters after you have cracked the idea behind your business. This is when it’s time to execute the ideas and plans.
One needs to first be clear regarding the business opportunity and determine what kind of business they would like to develop. Conducting a study is imperative at this point so as to explore the technical, economic, and legal aspects of establishing the business. After this, it’s time to search for promoters who are interested in the business idea and find it interesting and lucrative enough to provide the capital for it.
Registration of a Company
The second stage of a company formation in Turkey or elsewhere is the step that involves registration of the company, which is when the company officially has its birth. There are several crucial documents required to be filed at this stage, such as the Memorandum of Association, Article of Association, and Statutory Declaration.
You will also need to prepare a list of all the directors and jot down their names, addresses, and occupations. These directors will be required to submit written consent stating that they have agreed to act as directors in the company that you’re forming. At the time of incorporation, the owners also need to state the address of the company’s registered office.
Once all the submitted documents have been properly evaluated, the name of the given company will become a part of the register, which is when the company will be issued a certificate known as a Certificate of Incorporation.
Certificate of Incorporation
The certificate of incorporation mentioned in the previous step is what forms the third stage in the entire process of company formation. After you receive this certificate, you can rest assured that the registrar was satisfied with the documents that you provided. This step is vital as it validates the establishment of your company in the official records.
Commencement of the Business
In order for a public company to begin its business, it’s imperative that they receive a certificate of commencement of business. For a private company, though, this part varies as they can begin their business operations after receiving the certificate of incorporation.
After a public company is issued the certificate of incorporation, it can then issue a prospectus to invite the public to subscribe to the company’s share capital. Post the subscription of the minimum number of required shares has been achieved, a letter needs to be sent to the registrar coupled with a bank document stating that the money has been received.
After the registrar is done evaluating the documents upon finding them satisfactory, that’s when the company will receive the certificate of commencement of business. The business activities can be initiated from the very date that the certificate is issued.