Find out from the office of the Registrar of Companies, the actual procedure for the formation of companies. Does it match with what you have studied? What are the obstacles which companies face in getting themselves registered?
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Ans: The Companies Act of 1956 establishes guidelines for the formation of both public and private corporations. Yes, it matched with what we have studied in the book.
Obstacles while registering a company:
Name availability, as at least 6 names have to be provided, as the proposed names could be rejected if that name is already registered.
Choosing the business type, as private limited, public limited, limited liability partnership, sole proprietorship, franchise, partnership, etc.
Ensuring the authenticity and accuracy of data in supporting documents while registering.
Deciding about the share structure, class of shares, types of shares etc.
Framing a well-defined business description.
Getting the DIN number.