TERM PAPER

ON

Corporate and Business law

Topic:-Formation of advertising company in India

Submitted to:-

Mrs.sukhpreet kaur
Submitted by:-

Name – Deepak Sharma

Roll no: - RS (1901) B-38
Registration no: - 10906112
MBA 193(LSM)

ACKNOWLEDGEMENT
First of all I would like to take this opportunity to express my gratitude towards all

those people who have helped me in the successful completion of this term paper,

directly or indirectly. I would also like to express my sincere gratitude towards “Mrs

Sukhpreet kaur” (my term paper guide) for her guidance and help which she willingly

provided at every step of my term paper.

Next, I would like to express my sincere ineptness to Wikipedia.org, and Google for

providing us with all necessary information for completion of this term paper.

Finally, I would like to thank all my family and friends for their encouragement,

support and good wishes

Index:-

 Introduction of company.
 Registration of a company in India.
 Types of companies formed in India.
  Formation of an advertising company in India.
 Advertising company.
 Formation of a limited advertising company.
 Registration of advertising company.
 Incorporation of advertising company. Approval name.
 Memorandum of association.
 Article of association.
 Certificate of incorporation.
 Document to be filled with registrar.
 Documents to fill with registrar.
 Tax registration.
 Filling registering, approving authority.
 Enclosures
 Bibliography.

Company-
A company, in broad sense, may mean an association of individuals formed for some
common purpose .but it is a voluntary association of persons. It has capital divisible in
to parts, known as shares. At the same time it is an artificial person created by a
process of law. It has a perpetual succession and a common seal. It exits only in
contemplation of law.

Characteristics of a company

 Separate legal entity.

 Limited liability.
 Perpetual succession.
 Common seal.
 Transferability of shares.
 Separate property.
 Capacity to sue.

Registration of a company in India

Company is a separate legal entity, which is registered under the company act. Every
country has different procedure of company registration. Company registration India
is registered under Companies act 1956, which provides easy and effective procedures
to register a company in India. Incorporation of Company is yet another important
area of concern. The Companies Act of 1956 sets down rules and regulations for the
establishment of both public and private companies. The most commonly used
corporate form is the limited company, unlimited companies being relatively
uncommon.

Types of companies are formed in India:

There are following types of companies which are formed in India

• Private Limited Company

• Public Limited Company
• Unlimited Company
• Partnership
• Sole Proprietorship
• Government company
 • Non-government company

The Companies Act of 1956 sets down rules for the establishment of both public and
private companies. The most commonly used corporate form is the limited company,
unlimited companies being relatively uncommon. A company is formed by registering
the Memorandum and Articles of Association with the State Registrar of Companies
of the state in which the main office is to be located.

• Foreign companies engaged in manufacturing and trading activities

abroad are permitted by the Reserve Bank of India to open branch
offices in India for the purpose of carrying on the following activities
in India:

• To represent the parent company or other foreign companies in

various matters in India, for example, acting as buying/selling agents in
India, etc.

• To conduct research work in which the parent company is engaged

provided the results of the research work are made available to Indian
companies.

• To undertake export and import trading activities.

• To promote possible technical and financial collaboration between

Indian companies and overseas companies

ADVERTISING COMPANY:-

Advertising is a form of communication used to influence individuals to purchase

products or services or support political candidates or ideas. Frequently it
communicates a message that includes the name of the product or service and how
that product or service could potentially benefit the consumer. Advertising often
attempts to persuade potential customers to purchase or to consume a particular brand
of product or service. Modern advertising developed with the rise of mass production
in the late 19th and early 20th centuries
Commercial advertisers often seek to generate increased consumption of their
products or services through branding, which involves the repetition of an image or
product name in an effort to associate related qualities with the brand in the minds of
consumers. Different types of media can be used to deliver these messages, including
traditional media such as newspapers, magazines, television, radio, billboards or
direct mail. Advertising may be placed by an advertising agency on behalf of a
company or other organization.
 Excel advertising India ltd

Formation of limited Advertising company in India-

A Public Limited advertising Company is a Company limited by shares in which there
is no restriction on the maximum number of shareholders, transfer of shares and
acceptance of public deposits. The liability of each shareholder is limited to the extent
of the unpaid amount of the shares face value and the premium thereon in respect of
the shares held by him. However, the liability of a Director / Manager of such a
Company can at times be unlimited. The minimum number of shareholders is 7.
Company registration India has made your business successful and efficient because
of registering a company in India & across the globe.
Online company registration in India is a new aspect of Company registration in
India, which is also easy and comfortable. The online facilities to get the company
registration process, form and registration of company name make person
comfortable. The online company registration process is very easy, fast and cheap
within law. The online company registration services also provide help and advice on
starting business development, corporate recovery, and financial planning regarding
to register a company in India.

Registration of Advertising company-

A company is formed by registering Articles of Association with the State Registrar
of Companies of the state in which the main office is to be located. There are many
companies in India, which provide Company Registration India Services, Taxation
and Licensing Services, and Vat registration so that the process of registering a
company will be easy and effective. These companies offer services like limited
company registration, online company registration, foreign company registration and
new company registration services in India. Company registration services in India
not simply offer a registration service, but also provide you with advice and support
for your business to flourish as long as you need it. Company registration India is
very essential to show excellence in any business flourishing in India as it safeguards
the profits and rights of a company. It includes company formation, company
incorporation and a long procedure to be followed. But today, it has been done by
different company registration services online that saves money and time of an
entrepreneur as well.
Incorpation of the Advertising company-approval of name:
The first step in the formation of a company is the approval of the name by the
registrar of the companies. In the state, union in which the company will maintain its
registered officeThis approval is provided subject to certain conditions: for instance,
there should not be an existing company by the same name. Further, the last words in
the name are required to be "Private Ltd." in the case of a private company and
"Limited" in the case of a Public Company. The application should mention at least
four suitable names of the proposed company, in order of preference. In the case of a
private limited company, the name of the company should end with the words
"Private Limited" as the last words. In case of a public limited company, the name of
the company should end with the word "Limited" as the last word. The ROC
generally informs the applicant within seven days from the date of submission of the
application, whether or not any of the names applied for is available. Once a name is
approved, it is valid for a period of six months, within which time Memorandum of
Association and Articles of Association together with miscellaneous documents
should be filed. If one is unable to do so, an application may be made for renewal of
name by paying additional fees. After obtaining the name approval, it normally takes
approximately two to three weeks to incorporate a company depending on where the
company is registered.
Before a company is formed, certain preliminary decisions are necessary, for example
it should be a private company or a public company. What its capital should be and
whether it is worthwhile forming a new company. All these decisions are taken by the
promoters of the company. They do the entire necessary preliminary work incidental
to the formation of a company.

Memorandum of association:
The memorandum of association is a document of great importance in relation to the
advertising company it contains the fundamental conditions upon which alone the
company is allowed to be incorporated. it is the charter of the company and defines its
reasons for existense.it not only show the object of the formation of a company. but
also the utmost possible scope of it.
Contents of memorandum

 The name of the company.

 The state in which the registered office of the company is to be situated.

 Limited liability.

 Share capital.

 Object of the company

A public company has the option of inviting the public for subscription to its share
capital. Accordingly, the company has to issue a prospectus, which provides
information about the company to potential investors. The Companies Act specifies
the information to be contained in the prospectus.

Articles of association-
The articles of association or just articles are the rules, regulations
for the internal management of the affairs of the company. They are
framed with the object of carrying out the aims and object as out in
the memorandum of association.

The articles are next in importance to the memorandum of

association which contains the fundamental conditions upon which
alone a company is allowed to be incorporated. They are as such
subordinate to, and controlled by the memorandum.

Contents of articles- it contains provisions relating to the following matters.

 Share capital.

 Lien on shares.

 Calls on shares.

 Transfers of shares.

 Transmissions of shares.

 Conversions of shares in to stock.

 Shares warrants.

 Alteration of capital.

 General meetings.

 Managers and secretary.

 Dividends and reserves.

 Capitalization of profits.
The Articles of Association contain the rules and regulations of the company for the
management of its internal affairs. While the Memorandum specifies the objectives
and purposes for which the Company has been formed, the Articles lay down the rules
and regulations for achieving those objectives and purposes
Certificate of incorporation-
When the requite document are filed with the registrar, the registrar satisfy himself
that the statutory requirements regarding registration have been duly complied. after
this a certificate of incorporation given by the registrar in respect of a company is
conclusive evidence that all the requirements of the companies act have been
compiled with in respect of registration.
After the duly stamped Memorandum of Association and Articles of Association,
documents and forms are filed and the filing fees are paid, the ROC scrutinizes the
documents and, if necessary, instructs the authorized person to make necessary
corrections. Thereafter, a Certificate of Incorporation is issued by the ROC, from
which date the company comes in to existence. It takes one to two weeks from the
date of filing Memorandum of Association and Articles of Association to receive a
Certificate of Incorporation. Although a private company can commence business
immediately after receiving the certificate of incorporation, a public company cannot
do so until it obtains a Certificate of Commencement of Business from the ROC

Document to be filled with the registrar:

The documents/forms stated below are filed along with Memorandum of Association
and Articles of Association on payment of filing fees (depending on the authorized
capital of the company):
Declaration of compliance, duly stamped
Notice of the situation of the registered office of the company
Particulars of Directors, Manager or Secretary
Authority executed on a non-judicial stamp paper, in favour of one of the subscribers
to the Memorandum of Association or any other person authorizing him to file the
documents and papers for registration and to make necessary corrections, if any
The ROC’s letter (in original) indicating the availability of the name.
Before the advertising company is registered, it is essential to ascertain from the
registrar of companies and if the proposed name of the company is approved then the
following documents duly stamped together with the necessary fees are to be filed
with the registrar.

 The memorandum of association.

 The article of association.

 The agreement.

 Declaration.
When a company is registered and a certificate of incorporation is issued by the
registrar the company becomes a distinct legal entity, its life commences from the
date mentioned in the certificate of incorporation. And the company requires a
perpetual succession. The member may come and go, but it goes on for ever, unless it
is wound up.
A public limited advertising company has to be obtained certificate to commence
business before it can commence business.

Tax Registration-
Businesses liable for income tax must obtain a tax identification card and number
[known as Permanent Account Number (PAN)] from the Revenue Department. In
addition to this, businesses liable to withhold tax must necessarily obtain a Tax
Deduction Account Number (TAN). Both the PAN and the TAN must be indicated on
all the returns, documents and correspondence filed with the Revenue Department.
The PAN is also required to be stated in various other documents such as the
documents pertaining to sale or purchase of any immovable property (exceeding Rs.
five lakh), sale or purchase of a motor vehicle, time deposit (exceeding Rs. 5 lakh),
contract for sale or purchase of securities (exceeding Rs. 10 lakh), to name a few

Filing Registering/Approving Authority

One copy has to be submitted along with a forwarding letter addressed to the
concerned Registrar of Companies.

Enclosures-
The declaration must be submitted with the following annexure.

 Document evidencing payment of fee.

 Memorandum and Articles of Association.

 Copy of agreement if any, which the proposed company wishes to enter into
with any individual for appointment as its managing or whole-time director or
manager

 Power of Attorney from subscribers.

 Letter from Registrar of Companies making names available .

 No objection letters from directors/promoters.

 Requisite fees either in cash or demand draft.

 FORM NO. 18

Registration No. of the Company Nominal Capital: Rs

THE COMPANIES ACT, 1956

Notice of the situation/change of situation of registered office

[Pursuant to section 146]

Name of the company Excel advertising limited.

Notice is hereby given that ----

(a) The registered office of the company is situated in ABC .with effect
from
[date]
(b) The situation of the registered office of the company of was changed from
with effect form .
[Date]

1. Situation of registered office falls under the jurisdiction of

(name of the police
station).*
Dated this Day of 19

Signature

Name
(In Block Capitals)

Designation

*State address of nearest police station with district and tehsil

Fees-
Fee payable depends on the nominal capital of the company to be registered and may
be paid in one of the following modes. Cash/postal order (up to Rs.501-), demand
draft favoring Registrar of Companies/Treasury Challan should be payable into
specified branches of Punjab National Bank for credit.
Money spent on advertising has increased in recent years. In 2007, spending on
advertising was estimated at more than $150 billion in the United States[2] and $385
billion worldwide,[3] and the latter to exceed $450 billion by 201

The Advertising Policy Procedure utilizes your company’s advertising resources to

reach the target market in the most cost effective manner. The advertising procedure
provides a framework for setting and achieving advertising objectives and enables
advertising measurement so that your company knows what works and what doesn’t.

Bibliography-
• www.wikipedia.com
•
The Advertising Policy Procedure applies primarily to the marketing manager and
company president. (16 pages, 2682 words)

Activities Covered in the Advertising Policy Procedure

• The Advertising Plan-Background
• Developing the Advertising Plan
• Monitoring/Measuring the Advertising Plan
• Updating the Advertising Plan

References Used in the Advertising Policy Procedure

• Consumer Protection Act (USA)
• Guides Against Deceptive Pricing
• Guides Against Bait Advertising
• Guides for the Advertising of Warranties and Guarantees
• Guides for Advertising Allowances and Other Merchandising Payments and
Services

Forms Included in the Advertising Policy Procedure

• Advertising Review Worksheet Form
• Advertising Objectives-Strategies Worksheet Form
• Advertising Plan Form
• Advertising Schedule (Sample) Form
Registration No. of Company
Rs. ................

THE

Declaration of compliance
1956 on applica

[Pu

Name of Company
Limited

Presented by ..

I, ., of
Registration No. of Company ...............
T
Particulars of appointmen

Name of Company ................................

Note : --- If a company has no
‘C’ the parts containing those headings
need not be filed.
A. Appointment of and changes amon

Name or names Father’s/ Us

and surname in husband’s res
full name ad
1 2

Notes: (1) A note of changes should be

director, etc. the words “in pl
Registration No. of Company ...............
T
Consent to act as director of a comp
[pursuant to s
Name of company ................................
Presented by .........................................
To the Registrar of Companies
I, the undersigned, hereby test
................................ pursuant to section
have not been disqualified to act as a di
I, the undersigned having cons
hereby undertake to take from the said
being the number/value of the shares pr
said company.
Name and surname Address
in full and father’s
names
1 2
.