. Explain the Steps of Formation of a Company in Bangladesh

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Explain the steps of formation of a company in Bangladesh

Introduction: A company is an association or collection of indivitual,whether natural persons, legal persons, or a mixture of both.
Every company has certain basic elements: * A name which has been reserved by the Registrar of Companies * At least one share, one shareholder and one director * A registered office where the company records are kept * An address for service where legal documents can be served * The Registrar will also ask for an address for communication.
Any entity engaging in business, such as: Proprietorship, Partnership or Corporation
There are two kinds of companies. Such as:
1.Private Company
2.Public Company. For establish a company, every company have to maintain some law this called "Company Law"
The act governing the laws relating to company matters is The companies Act, 1994 in Bangladesh. The term company is used to describe an association of number of persons formed for some common purpose of carrying on a business with a view to earning profit and registered according to law relating to companies.
Section 2 (1) (c) of the Act states that, A company means,
" a company formed and registered under this act or a existing company"
Different between private and public company: The difference of private and public company are given below:
1.Minimun capital of companies: Private company requires less capital being a small enterprise. Public company requires a large scale enterprises and lot of capital.
2.The procedure of formation: The procedure of formation is simple. The procedure of formation is rather complicated.
3.Register certificate for Public and Private company doing business: A private company can commence business immediately on acquiring the certificate of incorporation. It need not file a prospectus or a statement in lieu of…...

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