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A company is an association of persons with perpetual succession, legal entity that are performing for a common goal. Company is not affected by the death, insanity or insolvency of any individual members. Company is a unit or group of persons whose formation is generally done by registering the articles of Association and Memorandum of Association with the state registrar of companies of the state in which the head office of a particular company is to be located. All the members of a company carry business activities in order to achieve same goal. Company formation is one of the common terms used in the corporate market, whereas company formation procedure plays an important role in formation of a company where rules, procedures and regulations of company establishment are regulated by The Companies Act of 1956 in India. It defines rules and regulations for both public as well as for private companies.

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