Formation of a Company

In the NCERT Business Studies book Business Studies (Class 11, Chapter – “Formation of a Company”), you learn about the legal and procedural steps required to establish a company. The chapter explains how a company is created through a series of stages that ensure proper organization and compliance with legal regulations.

You explore the different stages of company formation, including promotion, incorporation, capital subscription, and commencement of business. These stages involve planning the business idea, registering the company with legal authorities, raising capital from investors, and obtaining permission to start operations.

You also study important legal documents such as the Memorandum of Association and Articles of Association, which define the company’s objectives, rules, and internal management. This chapter helps you understand the legal framework behind company formation and develops your ability to analyze how businesses are formally established and structured.