formation of company assignment

How to form a corporation in 11 steps

Starting your business is an exciting time. Knowing how to form a corporation will get your new business venture off to a good start.

Ready to start your business?

by   Diane Faulkner

Diane is a writer, speaker, and human resource consultant with over 30 years of experience working in and covering em...

Read more...

Updated on: February 29, 2024 · 15 min read

1. Choose a business name

2. register a dba, 3. appoint directors, 4. file your articles of incorporation, 5. write your corporate bylaws, 6. draft a shareholder agreement, 7. hold initial board of directors meeting, 8. issue stock, 9. obtain business permits and licenses, 10. register your business, 11. open a corporate bank account, forming a corporation: a state-by-state guide, forming a corporation faq.

A corporation is a legal business entity that is separate from its owners, which can protect you from any business liabilities and help get your business off the ground.

Whether it's to save money on taxes, attract investors, protect yourself, or boost reputability,  starting a corporation  might be the best next step for you and the business.

In this piece, we'll walk you step by step through the incorporation process, review state-specific requirements, and answer some common questions you may have along the way.

An important first step when starting a corporation is  selecting a business name . In most states, you'll need to include a corporate designation or a word that identifies your business as a corporation.

Examples of corporate designations include:

• Incorporated (Inc.)
• Corporation (Co.)

When choosing a corporate name, you should also be sure that your name of choice doesn't infringe on any existing trademarks. A  trademark search  can help you ensure that your name is available to use.

It's also a good idea to check your state's list of restricted words. This list includes words that are off-limits for use in your business name. Examples include “bank" and “insurance."

Certain words are prohibited unless you are legally allowed to run your business as such by the respective government agency. To ensure that  your name is legally available , check with your state's Secretary of State's  office.

If you want to do business under a name that is different from the corporate name you've chosen, you may need to register a fictitious name. This allows you to keep the identity of your corporation separate from your business name.

A fictitious name may also be known as:

• Doing business as ( DBA)
• Assumed name

Depending on where you're located, the laws surrounding DBA names can vary. Be sure to check with your  Secretary of State's office to ensure your DBA name meets all legal guidelines.

When forming a corporation, the owners will often  appoint directors . The owners can appoint themselves and/or others to be directors.

A director's responsibilities include:

• Governing the corporation
• Managing the corporation's business and affairs
• Electing corporate officers
• Attending corporate meetings

The number of directors needed will depend on the laws and guidelines of your state and could also depend on the number of owners your corporation has.

Next, you'll need to complete and file  articles of incorporation  with your Secretary of State's office. By doing so, you will establish your corporation as its own business entity.

Articles of incorporation typically include the:

• Name and address of the corporation
• Purpose of the corporation
• Name and address of the registered agent
• Type and number of shares of stock certificates to be issued

The registered agent  is the contact person listed for your corporation. They will receive service of process notices, government correspondence, and compliance-related documents on behalf of your corporation.

Depending on your state, articles of incorporation may be called the certificate of formation or  certificate of incorporation .

Another important step is  writing corporate bylaws . Bylaws are written rules that determine how your corporation will be governed.

Corporate bylaws typically cover things like:

• How many shares of stock your corporation can issue
• How many directors are required
• Meeting and recordkeeping procedures

Although these bylaws are not required to be filed with the state, they are an important part of the incorporation process. It can be helpful to reach out for  legal assistance  when creating corporate bylaws to ensure nothing slips through the cracks.

A  shareholder agreement  will help protect the interests of any remaining shareholders in case certain events take place.

This agreement will be used:

• In the event of an owner's death
• If an owner transfers ownership of their shares

While optional, a shareholder agreement is a great document to have in an unexpected event. If needed, a business attorney can help you draft this document.

No matter how many directors your corporation has, it's important to hold an initial meeting with your entire  board of directors . Without an initial meeting, the board might lack direction or clarification that enables them to make clear decisions about the corporation.

An initial board of directors meeting should cover:

• Adoption of corporate bylaws
• Appointment of corporate officers
• Authorization to issue stock

Additionally, if you wish to elect  S corporation status , you should also discuss this at the initial meeting and gain approval.

In this kind of business structure, stock is issued to raise capital to  help finance the corporation . After the board of directors has authorized the issuance of stock, you may begin  issuing and distributing stock  to investors.

When issuing stock, it's important to record:

• Who purchased the shares
• How many shares they bought
• How much the shares cost
• When they bought the shares

Stock is typically issued as a physical certificate or in the form of digital shares.

Before you can start doing business as a corporation, it's also important that you obtain all of the  required business permits and licenses .

The permits and licenses required will depend on your:

• City and county laws
• State government and federal laws
• Your specific industry

As you begin the  application process , check out your state's specific requirements on the Small Business Administration website.

Because corporations are separate taxpaying entities, you will need to obtain specific tax ID numbers to ensure you are paying the appropriate taxes.

You will likely need tax ID numbers from:

• The Internal Revenue Service (IRS)
• Your state revenue agency

Depending on the state you're doing business in, and your corporation type, the taxation your corporation could face will vary. For the most up-to-date information about the  taxation of corporations , you can visit the  IRS website .

A crucial step in forming a corporation is opening a  corporate bank account . This account will be separate from the bank accounts of its owners, which helps protect your personal funds from any business liabilities. LegalZoom works with Bank of America  to help our customers open business checking accounts.

Be sure to check with the bank you choose to see what documents will be required. Examples of required documents and information include:

• Corporate resolution
• Articles of incorporation
• Employer identification number (EIN)

If you're unsure what your corporation's EIN is, you can obtain it from the IRS.

Whether it's the cost to incorporate, the difference in tax laws, or the variation in document names, it is common for the incorporation process to vary slightly from state to state. Here are some states with some notable differences in the incorporation process.

When forming a  corporation in California , you must also file a  Statement of Information . This document must be filed within 90 days of filing your articles of incorporation.

This form will also contain the information that's included in your articles of incorporation.

Delaware is a popular state to incorporate in because of its lenient laws for business owners. When  incorporating in Delaware , you do not have to be a Delaware resident. This allows those from other states to benefit from Delaware's business-friendly tax advantages.

To remain active as a  corporation in Florida , you must file what's known as the Annual Report. This report form must be filed by May 1.

When  incorporating in Georgia , you must publish a notice of intent to incorporate in a newspaper in the county where your office will be located. This process must be initiated within one business day after filing your articles of incorporation and published once a week for two consecutive weeks starting within 10 days after receipt of the notice by the newspaper.

After registering as a  corporation in Missouri , you must file the Missouri Annual Report within 30 days.

When forming a  corporation in Nebraska , you must also publish a notice of incorporation in a legal newspaper located in the same county as your corporation's office.

The published notice must contain:

• The name of your corporation
• The number of authorized shares to be issued
• The address of the corporation's registered office and agent
• The name and address of each incorporator

This process must take place after filing your articles of incorporation with the Nebraska Secretary of State.

Additional paperwork is required when filing your articles of  incorporation in Nevada . You must also file the Nevada Initial List of Directors and Business License Application.

To officially register your  corporation in New Mexico , you must file the New Mexico Corporate Initial Report. It must be filed within 30 days of receiving your certificate of incorporation from the New Mexico Secretary of State.

All  New York corporations  must file a statement every two years. This statement must be filed with the Secretary of State during the same month that the certificate of incorporation was filed.

South Carolina

As a  corporation in South Carolina , you must also file the Initial Annual Report of Corporations. This additional document must be filed with the South Carolina Department of Revenue along with your articles of incorporation.

To officially create a  corporation in Tennessee , you will need to file the Domestic For-Profit Corporation Charter. Similar to articles of incorporation, this document will officially register your business as a corporation. This document must be filed with the Tennessee Secretary of State.

To  incorporate in Texas , you must file a certificate of formation with the Secretary of State. Once this certificate has been filed along with the filing fee, the corporation is official.

To  incorporate in Washington , you must file the Washington Initial Report within 120 days of your incorporation date. You may also include this report with your articles of incorporation.

Here are answers to some common questions you may ask yourself when determining if forming a corporation is the right move for you and your business.

Q: What's the difference between a corporation and an LLC?

Just like a corporation, a  limited liability company (LLC)  protects owners from business liabilities and debts. The main difference between the two is that an LLC has one or more owners, whereas a corporation has shareholders.

Another key difference is the way the two are maintained. A corporation will generally have more formal recordkeeping and reporting requirements than an LLC.

Q: What's the difference between a C corporation and an S corporation?

When incorporating your business, you may choose to  form either a C or S corporation . One of the main reasons that people choose to form an S corporation is to save money on taxes.

As a C corporation, you must pay taxes on your income twice—on the net business income and the profits received by shareholders. As an S corporation, you will only pay taxes on the latter.

Q: Can I switch from an S corporation to a C corporation?

Yes, you can switch corporate designations. To do so, you must gain majority shareholder approval to change your corporation's status with the IRS.

Q: What is a B Corporation?

A B Corporation is a for-profit entity recognized and certified by B Lab, a nonprofit corporation that grades various business entities on social and environmental responsibility, transparency, accountability, and balance between profit and purpose. A B Corporation is not a legal business entity but rather a certification by a third party on how you conduct business. The certification is not the same as a business license.

Q: What are professional corporations?

A professional corporation, or PC, is a type of corporation that provides services by licensed professionals, such as accountants, architects, attorneys, engineers, and physicians. A professional corporation is also known as a professional service corporation (PSC) or professional association (PA). 

Q: I am a sole proprietorship. How can I determine whether a C corporation or S corporation is right for me?

Before moving from a sole proprietorship to a C corp or S corp, it’s best to consult a tax professional and a small business lawyer. An attorney can show you how both a C corp and an S corp can offer you personal liability protection by keeping your personal assets separate from the corporation’s assets. Speaking with someone specializing in small business accounting can show you how a C corp exposes you to double taxation, whereas an S corp does not. A tax professional or attorney can also explain how either business structure protects your personal assets by keeping your corporation’s debts separate.

Q: What is a general business license?

General business licenses, also known as business tax receipts, business tax certificates, or business operating licenses, permit you to operate your business in a specific geographic area. It's a required document for any new business that provides services or merchandise to the public, even if your business is home-based.

Q: What are corporate formalities?

Corporate formalities refer to the operating rules and guidelines your corporation must follow to meet operational requirements. They include:

• Registering for your business permits and licenses
• Filing your doing business as (dba)
• Setting up a business bank account
• Maintaining an independent financial account for your corporation
• Holding regular and annual meetings for the board of directors
• Keeping separate records for corporate activity

Q: Can we have temporary board members?

It depends on what your bylaws call for as to whether you can have a temporary board member serve. You cannot violate your bylaws with a simple resolution to extend a term, even on a temporary basis or during a crisis. If you foresee an opening, it’s best to build some flexibility into your bylaws. You could:

• Define the term to coincide with the annual meeting rather than a set date so you can delay the annual meeting and delay board terms that are set to expire.
• Define soft-term limits rather than hard-term limits so you can re-elect members to an additional term.
• If you do not build in flexibility, you could ask a board member to stay on the board as a special advisor or ambassador so members can continue to advocate for your company. They would not have voting rights, but their expertise, knowledge, and participation while motions are deliberated will be invaluable.
• Check with a small business attorney to see if you have the option in your state to consider a quick bylaws amendment to add any of the above options.

Q: What is a tax election?

A tax election is your choice between whether you want to be taxed as a C corporation or an S corporation. It’s also where you choose a cash basis of accounting or an accrual basis. These are terms you will hear when working with a tax professional. Your election will have consequences related to the timing and amount of taxes you pay.

Q: How many initial directors will I need to incorporate?

Different states have different requirements. You may only need one, but you may need three or more. It’s best to check with your state or local small business attorney.

Q: Do I need to keep my initial directors after I incorporate?

No. You can replace the board with a permanent one after incorporation.

Q: What is ownership interest?

Ownership interest is any stake a person owns in a company, property, product, or other asset. If there is more than one owning party, then the ownership interest is either divided equally or by the amount invested.

Q: What are the different types of ownership interest?

There are three types:

• Sole ownership, where one person has all ownership interest
• Joint tenancy, where two or more people hold title to a property
• Tenancy-in-common, where two or more people have ownership, but the ownership may be unequal

 Q: What is the corporate income tax?

The corporate income tax is the tax you pay a government entity on your company’s profits. It applies only to your company’s income, which is defined as revenue minus expenses. 

Q: Why do I need to draft corporate bylaws?

While a small business owner who is a sole proprietor isn’t required to draft corporate bylaws, a business owner who chooses to be a C corp or S corp needs them to maintain a clear separation between business and personal commitments. They define the duties and responsibilities of people in your organization. Bylaws help resolve uncertainty or conflicts. You also need them to open a business bank account, obtain a business loan, set up a retirement plan, or obtain government certification as a minority-owned or woman-owned business.

Q: Can S corporations be publicly traded companies?

No. This is because S corporations are limited to 100 shareholders who must be U.S. citizens or residents, and they also do not maintain corporate formalities like C corporations. S corporations may invest in other corporations or mutual funds. 

Q: Can C corporations be publicly traded?

Yes. Almost all C corporations are publicly traded companies. 

Q: What are the pros and cons of being my own registered agent?

The main pros are that you won’t have to spend money on a professional registered agent and that it’s not a difficult job. The main cons are that your address becomes a public record, you must be available at the physical location during regular business hours, and you have extra paperwork. Plus, you may have filing fees should you move. 

Q: What should I consider when choosing a business structure?

When choosing your business structure, you should at least consider your tax obligations. For example, a sole proprietorship is straightforward but comes with personal liability. Your business and you are the same legal entity. You should also consider your industry, as it will influence your business structure. For example, professional service providers tend to form partnerships for flexibility and ease of formation. You should also consider personal liability protection. With a C corp, S corp, and LLC, only the entity can be sued, not owners or officers. 

You may also like

What does 'inc.' mean in a company name?

'Inc.' in a company name means the business is incorporated, but what does that entail, exactly? Here's everything you need to know about incorporating your business.

October 9, 2023 · 10min read

How to get an LLC and start a limited liability company

Considering an LLC for your business? The application process isn't complicated, but to apply for an LLC, you'll have to do some homework first.

March 21, 2024 · 11min read

What is a power of attorney (POA)? A comprehensive guide

Setting up a power of attorney to make your decisions when you can't is a smart thing to do because you never know when you'll need help from someone you trust.

May 7, 2024 · 15min read

• List of Commerce Articles
• Steps in Formation of A Company

Steps in Formation of a Company

The formation of a company goes through a number of steps, starting from idea generation to commencing of the business. This whole process can be broken down into 4 major phases or steps, which we will be discussing in the lines below.

The major steps in formation of a company are as follows:

• Promotion stage
• Registration stage
• Incorporation stage
• Commencement of Business stage

Also see:  Kinds Of Companies

Let us discuss these steps in detail.

Promotion Stage: Promotion is the first step in the formation of a company. In this phase, the idea of starting a business is converted into reality with the help of promoters of the business idea.

In this stage the ideas are executed. The promotion stage consists of the following steps:

• Identify the business opportunity and decide on the type of business that needs to be done.
• Perform a feasibility study and determine the economic, technical and legal aspect of executing the business.
• Interest shown by promoters towards the business idea and supply of capital and other necessary procedures to start the business.

Registration stage: Registration stage is the second part of the formation process. In this stage, the company gets registered, which brings the company into existence.

A company is said to be in existence, if it is registered as per the Companies Act, 2013. In order to get a company registered, some documents need to be provided to the Registrar of Companies.

There are several steps involved in the registration phase, and are as follows:

• Memorandum of Association: A memorandum of association (MoA) must be signed by the founders of the company. A minimum of 7 members are required in case of a public company and 2 in case of a private company. The MoA must be properly registered and stamped.
• Article of Association: Article of Association (AoA) is also required to be signed and submitted. All members who previously signed MoA, should also be signing the AoA.
• The next step is preparing a list of directors which should be filed with the Registrar of Companies.
• Directors of the company should provide a written consent agreeing to be directors, should be filed with the Registrar of Companies (RoC).
• The notice of address of the office needs to be filed.
• A statutory declaration should be made by any advocate of either the High Court or Supreme Court, or a person of the capacity of Director, Secretary or Managing Director. This declaration shall be filed with the RoC.

Certificate of Incorporation: Certificate of incorporation is issued when the registrar is satisfied with the documents provided. This certificate validates the establishment of the company in the records.

Certificate of commencement of business: Certificate of commencement of business is required for a public company to start doing business, while a private company can start business once it has received the certificate of incorporation.

Public companies receiving the certificate of incorporation can issue prospectus in order to make the public subscribe to the share for raising capital. Once all the minimum number of required shares have been subscribed, a letter should be sent to the registrar along with a bank document stating the receiving of the money.

The registrar will issue a certificate upon finding the provided documents satisfactory. This certificate is known as certificate of commencement of business. The company can start business activities from the date of issue of the certificate and the business shall be done as per rules laid down in the MoA (Memorandum of Association).

This concludes the topic of Steps in Formation of a Company, which is an important concept for the students of Commerce. For more information, stay tuned to BYJU’S.

Other Important Topics in Business Studies

• Sole Proprietorship
• Characteristics of Cooperative Society
• Types of Social Responsibilities

Leave a Comment Cancel reply

Your Mobile number and Email id will not be published. Required fields are marked *

Request OTP on Voice Call

Post My Comment

Register with BYJU'S & Download Free PDFs

Register with byju's & watch live videos.

A Comprehensive Guide To Company Formation In The USA

Why choose the usa for company registration, step-by-step process of usa company registration:, types of business structures in the usa:, documents required for usa company registration:, 1. sole proprietorship:, 2. partnership:, 3. limited liability company (llc):, 4. corporation:, 5. nonprofit organization:, 6. personal identification documents for owners:, 7. registered agent information:, 8. irs form ss-4:, 9. business licenses and permits:, 10. operating agreement or bylaws:, 11. financial information:, conclusion:.

Contact Right Now

• Mobile number *
• Register For ? * Register For ? Company Registration Trademark Registration Fssai food license Registration ISO Registration IEC Registration Copyright registration Patent Registration MSME Registration LLP Registration One Person Company Section 8 Registration Nidhi company Registration GST Return GST Registration DPCC Registration DOT OSP Registration EPR Registration Bee Registration BIS Registration Pasara Registration LMPC Registration Dubai Registration USA Company Registration Singapore Company Registration Others

Discover More Services

Trademark/patent, business registration, registration, compliances.

• Trademark Opposition
• Trademark Renewal
• Trademark Registration
• Patent Registration
• Provisional Patent
• Patent Search
• Copyright Registration

Company Registration

• LLP Registration
• Pvt Ltd Company Registration
• Partnership Registration

Company Conversion

• Proprietorship to Private Limited Company
• Partnership firm to LLP
• PVT LTD Company to Public Limited Company

Special Entites

• Section 8 Company Registration
• Nidhi Company Registration

Trademark Registration States

• Trademark Registration In Uttar Pradesh
• Trademark Registration In Tamil Nadu
• Trademark Registration In Rajasthan
• Trademark Registration In Maharashtra
• GST Registration
• GST Software
• GST return filing online
• Income Tax Return
• Business Income Return
• Bulk Return Filing
• TDS Return filling
• EPR Certificate in Chennai
• EPR Certificate in Mumbai
• EPR Certificate in Maharashtra
• EPR Certificate in Karnataka
• Drug License
• Food License
• Eating House License
• LLP Annual Filing
• Company Annual Filing Online
• Bookkeeping Services
• ROC Company
• Sole Proprietorship

• Accountancy
• Business Studies
• Organisational Behaviour
• Human Resource Management
• Entrepreneurship
• CBSE Class 11 Business Studies Notes

Chapter 1: Business, Trade, and Commerce

• Business : Characteristics, Objectives and Classification
• Difference between Business, Profession, and Employment
• Trade and Auxiliaries to Trade
• Business Risk : Meaning, Types, Nature & Causes
• 10 Basic Factors for Starting a Business
• Types of Industries- Primary, Secondary, and Tertiary

Chapter 2: Forms of Business Organisation

• Forms of Business Organization
• Sole Proprietorship : Meaning, Definition and Features
• Advantages and Disadvantages of Sole Proprietorship
• What is Joint Hindu Family Business (Hindu Undivided Family Business) ?
• Partnership | Meaning and Features of Partnership
• Advantages and Disadvantages of a Partnership
• Partnership Deed : Aspects and Registration
• Types of Partners
• Types of Partnership
• Cooperative Society : Meaning, Features, and Types
• Advantages and Disadvantages of Cooperative Society
• Joint Stock Company: Meaning, Features, and Types
• Advantages and Disadvantages of a Joint Stock Company
• Choice of Form of Business Organisation

Chapter 3: Private, Public, and Global Enterprises

• Private, Public, and Global Enterprises
• Forms of Organizing Public Sector Enterprises
• Difference between Private and Public Sector
• What is Statutory Corporation? | Meaning and Features
• Merits and Demerits of Statutory Corporation
• What is a Government Company? | Meaning, Features, and Suitability
• Merits and Demerits of Government Company
• Departmental Undertaking : Meaning, Features, and Suitability
• Merits and Demerits of Departmental Undertaking
• Changing Role of Public Sector
• Government Policy towards Public Sector since 1991
• What are Global Enterprises?
• Benefits and Types of Joint Venture
• Public Private Partnership (PPP) : Meaning, Features, Applications, Advantages and Disadvantages

Chapter 4: Business Services

• Types of Business Services
• Difference between Goods and Services
• Nature and Types of Services
• Types of Banking
• Meaning and Benefits of e-Banking
• Insurance : Meaning, Definitions and Functions
• Principles of Insurance
• Types of Insurance
• Fire Insurance: Meaning, Claim for Loss (Conditions) and Elements of Fire Insurance Contract
• Marine Insurance : Importance, Types, Advantages & Disadvantages
• Difference between Life, Marine, and Fire Insurance
• Communication Services: Postal and Telecom Services
• Types of General Insurance
• Warehousing Services: Meaning, Types, and Function

Chapter 5: Emerging Modes of Business

• Introduction to Emerging Modes of Business
• e-Business: Benefits and Limitations
• Scope of e-Business : B2B | B2C | C2C | Intra B-Commerce
• Benefits of E-commerce
• Difference between E-business and Traditional Business
• What is an Online Transaction?
• Types of e-business Risks
• Outsourcing : Meaning, Features, Scope, Types of OSP & BPO
• Why is Outsourcing Needed?
• Concern Over Outsourcing

Chapter 6: Social Responsibilities of Business and Business Ethics

• Social Responsibilities of a Business and its Need
• Types of Social Responsibilities of a Business
• Business Ethics : Meaning, Benefits and Elements
• Social Responsibility : Arguments For and Against Social Responsibility
• Social Responsibility towards Different Interest Groups
• Business & Environmental Protection: Causes, Types, Role & Need for Pollution Control

Chapter 7: Formation of a Company (Not in CBSE Curriculum for the Academic Year 2022-23)

Steps in the formation of a company.

• Promotion of a Company: Meaning, Documents and Steps Involved
• Who is a Promoter?
• Incorporation of a Company & Documents Required for It
• Difference between Articles of Association (AOA) and Memorandum of Association (MOA)
• Steps required for raising Funds from Public
• One Person Company: Meaning and Characteristics

Chapter 8: Sources of Business Finance

• Business Finance and Its Sources
• Business Finance: Meaning, Nature, and Significance
• Sources of Funds and its Classification
• What are the different Sources of Finance?
• Retained Earnings : Meaning, Features, Advantages and Limitations
• Trade Credit : Advantages and Disadvantages
• Advantages and Disadvantages of Factoring
• Lease Financing : Meaning, Advantages and Disadvantages
• Public Deposits: Advantages and Disadvantages
• Commercial Paper : Features and Types
• Advantages and Disadvantages of Commercial Paper
• Issue of Shares : Meaning and Types of Shares
• Equity Shares : Merits and Demerits
• Preference Shares : Features, Types, Merits and Demerits
• Debenture : Meaning, Types, Advantages, and Disadvantages
• Commercial Banks : Features, Advantages & Disadvantages
• Advantages and Disadvantages of Financial Institutions
• International Financing: Meaning and Sources of International Financing
• Factors Affecting the Choice of the Source of Funds

Chapter 9: Small Business

• MSME and Business Entrepreneurship
• Entrepreneurship and its Characteristics
• Importance and Types of Intellectual Property Rights (IPR)

Chapter 10: Internal Trade

• Introduction to Internal Trade
• Internal Trade and its Types
• Wholesale Trade and Services of Wholesalers
• Services offered by Wholesalers
• Services offered by Retailers
• Difference between Wholesaler and Retailer
• Types of Retailers: Itinerant Retailers and Fixed Shop Retailers
• Who are Itinerant Retailers?
• Who are Fixed Shop Retailers?
• Departmental Stores : Features, Types, Advantages & Disadvantages
• Chain or Multiple Stores : Features, Advantages & Disadvantages
• Difference between Departmental Stores and Multiple Stores
• Mail Order Houses: Meaning, Advantages, and Disadvantages
• Consumer Cooperative Stores: Meaning, Advantages, and Disadvantages
• Supermarkets : Characteristics, Advantages and Disadvantages
• What is External Trade?
• What is GST? Types, Features, Benefits, Input Tax Credit, GST Council
• Role of Commerce and Industry Associations in Promotion of Internal Trade

Chapter 11: International Business

• International Business : Meaning, Scope and Benefits
• International Business: Meaning, Reason, Scope, and Benefits
• Difference between International Trade and International Business
• Difference between Domestic Business and International Business
• Modes of Entry into International Business
• Exporting and Importing - Meaning, Advantages and Disadvantages
• Contract Manufacturing: Meaning, Advantages, and Disadvantages
• Advantages and Disadvantages of Licensing and Franchising
• Wholly Owned Subsidiaries: Meaning, Advantages, and Disadvantages
• What is Export Procedure?
• Documents required in Import Transaction
• Foreign Trade Promotion Measures and Schemes
• Organisational Support in International Business
• International Monetary Fund (IMF): Objectives and Functions
• World Trade Organisation (WTO): Features, Functions and Objectives

Modern-day business requires a large amount of funds. The competition and change in the technological environment are also increasing day by day. As a result, the company form of organization is being preferred by more and more business firms. The formation of a company involves several steps, that are required from the time a business idea originates to the time a firm is legally ready to commence business, also referred to as stages in the formation of a company. Those who are taking these steps and the associated risks are promoting a company and are called its promoters.

Table of Content

1. Promotion of a Company

A. functions of a promoter: , b. documents required to be submitted:, c. position of promotor: , 2. incorporation of a company, effect of the certificate of incorporation:, 3. subscription of the capital, 4. commencement of business.

To fully understand the process we will divide the formalities into four distinct stages, which are:

• Incorporation
• Subscription of the Capital
• Commencement of Business

However, it must be noted that these stages are appropriate from the point of view of the formation of Public Ltd. Company. As far as the Private Ltd. Companies are concerned only the first two stages mentioned above are appropriate. A Private Co. can start its business immediately after obtaining the certificate of incorporation as it is prohibited to raise funds from the public. 

Promotion is the first stage in the formation of a company. It involves conceiving a business opportunity and taking the initiative to form a company so that practical shape can be given to exploiting the available business opportunity. Apart from conceiving business opportunities the promoters analyze its prospects and bring together the men, materials, machinery, managerial abilities, and financial resources and set the organization going.

1. Identification of Business Opportunity 

2. Feasible Studies

• Technical Feasibility
• Financial Feasibility
• Economic Feasibility

3. Name Approval

4. Fixing up Signatories to the Memorandum of Association

5. Appointment of Professionals

6. Preparation of Necessary Documents

1. Memorandum of Association: MOA is the most important document as it defines the objective of the company. No companies can legally undertake activities that are not contained in the MOA. The MOA contains different clauses which are given as follows-

• The Name Clause
• Registered Office Clause
• Objects Clause
• Liability Clause
• Capital Clause
• Association Clause

2. Articles of Association: AOA contains the rules regarding the internal management of the company. A Public Ltd. Co. may adopt Table A which is a model set of articles given in the companies act. Table A is a document containing rules and regulations for the internal management of a company. If a company adopts Table A, there is no need to prepare separate Articles of Association.

3. Consent of Proposed Directors: Apart from the MOA and AOA, written consent of each person named as a director is required confirming that they agree to act in that capacity and undertake to buy and pay for qualification shares.

4. Agreement: The agreement, if any, which the company proposes to enter with any individual.

5. Statutory Declaration: A declaration stating that all the legal requirements about registration have been complied with is to be submitted to the Registrar. 

6. Payment of Fees: Along with the above-mentioned documents, necessary fees have to be paid for the registration of the company. 

Promotors are neither the agents nor the trustee of the company as the company is yet to be incorporated. Therefore, they are personally liable for all the contracts which are entered by them, for the company before its incorporation, in case the same is ratified by the company later on.

After going through the above formalities the promotors of the company make an application for the Incorporation of the company. The application is to be filed with the Registrar of the Companies of the state within which they plan to establish the registered office of the company. The application for registration must be accompanied by the same certain documents about which we have already discussed above. These may be briefly mentioned again-

1. Memorandum of Association duly stamped, signed, and witnessed.

2. Article of Association duly stamped, signed, and witnessed.

3. Written Consent of the Proposed Directors

4. Agreement , if any, with the proposed Managing Director, Manager, etc.

5 . A copy of the Registrar’s Letter approving the Name of the Company.

6. A Statutory Declaration affirming that all legal requirements of registration have been submitted.

7. Notice the exact Address of the Registered Office.

8 . Documentary evidence of Payment of Fees.

A company is legally born on the date printed on the Certificate of Incorporation. It becomes a legal entity with perpetual succession on such a date. It becomes entitled to enter into valid contracts. On the date of issue of Certificate of Incorporation, a private company can immediately commence its business, it can raise necessary funds through a private arrangement, and proceed to start a business. A Public Company, however, has to undergo two more stages in its formation. 

A Public Company can raise the required funds from the public using an issue of shares and debentures. For this purpose, it has to issue a prospectus which is a kind of invitation to the public to subscribe to the capital of the company and undergo various other formalities. The following steps are required for raising funds from the public-

1. SEBI Approval: Securities and Exchange Board of India which is the regulatory authority in our country has issued guidelines for the discloser of information and investor protection. A company inviting funds from the general public must follow SEBI guidelines of discloser of all the adequate information.

2. Filing of Prospectus: Prospectus is a document that includes any notice, circular, advertisement, or other documents inviting offers from the public for the subscription. It has to be filed with the Registrar of Companies.

3. Appointment of Bankers, Brokers, and Underwriters

4. Minimum Subscription: If Applications received for the shares are for an amount less than 90 percent of the issue size, the allotment cannot be made.

5. Application to Stock Exchange: Application is to be made to at least one stock exchange for permission to deal its shares or debenture.

6. Allotment of Shares

If the amount of minimum subscription is raised through the new issue of shares, a public company applies to the Registrar of Companies for the issue of Certificate of Commencement of Business. The following documents are required:

1. A declaration that shares payable in cash have been subscribed for and allotted.

2. A declaration that every director has paid in cash, the application, and allotment money on his shares.

3. A declaration that no money is payable or liable to become payable to the applicants.

4. A statutory declaration that the above requirements have been complied with.

Please Login to comment...

Similar reads, improve your coding skills with practice.

What kind of Experience do you want to share?

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

• We're Hiring!
• Help Center

Business Law: Forming a Company

Related Papers

segni mouna

Rosmery Alvarado

Desde siempre, uno de los retos más importantes para los estudiantes en su formación universitaria es la de aprender a investigar. En la misma línea, los docentes también se enfrentan a constantes desafíos en la búsqueda de mejorar el proceso de enseñanza-aprendizaje de sus estudiantes. En ese sentido, la didáctica de la investigación cobra real importancia en la producción científica de los estudiantes. Esto quiere decir, que los cambios que el docente incorpora en la metodología de enseñanza, repercuten directamente en la manera en la que el estudiante produce conocimiento y en la forma en la que se apropia y utiliza el saber científico. El presente ensayo busca, por tanto, mostrar la experiencia en la enseñanza de la investigación científica en estudiantes de la Facultad de Educación de la UNMSM, a partir del uso de distintas herramientas tanto tecnológicas como tradicionales, que permiten que los estudiantes entiendan, manejen, se familiaricen y desarrollen sus propias investiga...

Innovative Journal of Medical and Health Science

Vinayak Vajpeyi

Use of diathermy in making skin incision has proved better then scalpel in many abdominal surgery with following advantages: Minimal pain post operatively Negligible blood loss Minimal wound collection Nil complication Better wound cosmesis

Released pollutants and poisonous chemicals in the highly-populated urban area can spread via wind flow and affect the health, safety, and wellbeing of those close to the source and others downstream. Being able to predict the transport of airborne contaminants in such urban areas could help stakeholders to plan emergency responses. Airflow due to wind in urban areas with closely packed buildings results in complicated aerodynamics around buildings that, in turn, can lead to intricate contaminant transport phenomena. We conduct high-resolution large-eddy simulations (LES) of airflow in Southern Manhattan, a highly-populated area in the New York City, due to a dominant wind blowing from south to north. The LES results show complex flow dynamics around the buildings of various heights and, consequently, complicated contaminant transport processes from a source-point which is located in front of the New York Stock Exchange building at 30 m above ground. The flow tends to align with the...

Journal of Biomolecular Structure and Dynamics

Dr. Shailendra S . Gurav

Lawrence Piper

Annals of the New York Academy of Sciences

Lydia Giménez Llort

International Journal of Oncology

Arpana Kamath

Carolina Ramírez

原版复制uc学位证书 查尔斯顿大学毕业证本科学位GRE成绩单原版一模一样

哪里能买到假文凭英国格拉斯哥大学毕业证购买格拉斯哥大学文凭办理学历认证机构《Q微信/1954292140》格拉斯哥大学毕业证书学位证书怎么购买【英国成绩单修改办理英国文凭毕业证成绩单、《格拉斯哥大学毕业证成绩单GPA修改案例》、原版格拉斯哥大学毕业证样本、英国文凭和毕业证书制作英国格拉斯哥大学毕业证翻译、格拉斯哥大学文凭证书实拍图怎么购买开除英国英国格拉斯哥大学 admission letter格拉斯哥大学Transcript。 专业留学服务公司《怎么购买格拉斯哥大学毕业证电子图》【Q/微1954 292 140】《英国格拉斯哥大学成绩单修改在线制作》拥有海外样板无数，能完美1:1还原海外各国大学格拉斯哥大学degree #Diploma #Transcripts等毕业材料。 【留信认证的作用】： 1：该专业认证可证明留学生真实留学身份。 2：同时对留学生所学专业等级给予评定。 3：国家专业人才认证中心颁发入库证书 4：这个入网证书并且可以归档到地方 5：凡是获得留信网入网的信息将会逐步更新到个人身份内，将在公安部网内查询个人身份证信息后，同步读取人 才网入库信息。 6：个人职称评审加20分。 7：个人信誉贷款加10分。 8：在国家人才网主办的全国网络招聘大会中纳入资料，供国家500强等高端企业选择人才。 【回国证明的用途】： 《留学回国人员证明》《英国格拉斯哥大学成绩单修改格拉斯哥大学文凭证书实拍图在线制作》【Q/微1954292140】《开除英国格拉斯哥大学毕业证电子图成绩单修改》是国家为了鼓励留学人员回国发展的一项优待政策，留学人员持有此证明，可以享受购买汽车免税，在国内证明留学身份、联系工作、创办企业、大城市落户口、创业申请国内各类基金等多项优惠政策。 √如果您在英、加、美、澳、欧洲等留学过程中或回国后： 1、在校期间因各种原因未能顺利毕业《英国格拉斯哥大学毕业证电子图怎么购买》【Q/微1954292140】《开除格拉斯哥大学学费单文凭证书实拍图》，拿不到官方毕业证； 2、面对父母的压力，希望尽快拿到； 3、不清楚认证流程以及材料该如何准备； 4、回国时间很长，忘记办理； 5、回国马上就要找工作《英国格拉斯哥大学成绩单修改格拉斯哥大学文凭证书实拍图在线制作》【Q/微1954292140】《开除英国格拉斯哥大学毕业证电子图成绩单修改》办给用人单位看； 6、企事业单位必须要求办理的； 7、需要报考公务员、购买免税车、落转户口、申请留学生创业基金。 主营项目： 1、办理毕业证，改成绩单《怎么购买格拉斯哥大学毕业证电子图》【Q/微1954292140】《英国格拉斯哥大学成绩单修改在线制作》，格拉斯哥大学Offer、在读证明、学生卡、信封、证明信等全套材料，从防伪到印刷，从水印到钢印烫金，高精仿度跟学校原版100%相同. 2、真实使馆认证（即留学人员回国证明），使馆存档可通过大使馆查询确认. 3、真实教育部国外学历学位认证《英国文凭证书实拍图开除格拉斯哥大学毕业证电子图》【Q/微1954292140】《在线制作格拉斯哥大学成绩单修改》，教育部存档，教育部留服网站100%可查. 4、留信网认证，国家专业人才认证中心颁发入库证书，留信网存档可查. 在留学之路上，千万不要觉得挂科是离自己很遥远的事，如果只是抱着车到山前必有路的想法，在无法毕业《怎么购买格拉斯哥大学毕业证电子图》【Q/微1954 292 140】《英国格拉斯哥大学成绩单修改在线制作》的边缘疯狂试探，到了事情已经是无法挽回的地步，才会后悔莫及。因为现在没有顺利毕业，拿不到本科学位《英国文凭证书实拍图开除格拉斯哥大学毕业证电子图》【Q/微1954 292 140】《在线制作格拉斯哥大学成绩单修改》，回国是根本没有办法可以做学历认证《英国格拉斯哥大学毕业证电子图怎么购买》【Q/微1954 292 140】《开除格拉斯哥大学文凭证书实拍图》的。而本科没有顺利毕业就是一件非常遗憾的事了，不仅花费了大量的时间和费用，后没有一个学位给自己的留学生涯一个交代，回国之后受认可的就只有出国前的学历，拿着这样的学历去找工作只会变得举步维艰。

RELATED PAPERS

John Kelleher

C-Legenda - Revista do Programa de Pós-graduação em Cinema e Audiovisual

Luiz Adolfo Andrade

Journal of Canadian Petroleum Technology

Turgay Ertekin

Pure and Applied Chemistry

Patrick Gelin

Journal of Customer Behaviour

Audhesh Paswan

Revista de Letras

Yan Kaue Brasil

Wilmert De Bosscher

Physics of Plasmas

Kasturi Baluja

Journal of Advanced Engineering and Computation

Anirban Banik

Springer eBooks

Alexandra Piepiorka

Gabriel Alfonso Torres Beregovenko

RELATED TOPICS

•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Mathematics
• Computer Science
• Academia ©2024

Registration Successful

Registration failed.

• Entrepreneurship Assignment Help

Stage In Formation Of A Company

Stage in formation of a company assignment help | stage in formation of a company homework help, stage in formation of  a company.

Submit Assignment Now!

Basics of Assignment Structure and Format

Some students, particularly those in their freshman years, tend to overthink things and try to go for assignment structures that are unnecessarily complicated, thinking this will help them stand out from their peers and get better grades. It doesn’t have to be that hard.

This guide will give you an overview of basic assignment structure which you can use as a checklist for your assignments. This will help make sure that you haven’t missed any critical sections which are typically expected in assignment papers.

You will have to trust us when we say that your teachers will be really grateful that you’ve stuck to the standard format as it will make their grading process easier.

If you’re pressed for time, you can also head on over to our resources page to download some free assignment paper templates with generic outlines which you can tweak further to suit your needs. However, if you do happen to use any of these, then please ensure to follow our guide on checking document metadata details to avoid being flagged incorrectly for plagiarism.

• Table of Contents

Overview of basic assignment structure

A very common advice is that any written work, which includes assignments, should have an introduction, a body, and a conclusion . This is a form of oversimplification but should you give you general idea of what is expected. In reality, academic writing requires additional subheadings under in the body or main part of your text to convey your ideas in a structured way.

So, here’s a more specific overview of the main structural parts of an assignment.

• Introduction
• Literature Review
• Methodology
• Conclusions

We explain each of these in more details in the next sections

What are the essential parts in assignment structure?

The 4 parts of an academic writing work which should be considered essential are Introduction, Body, Conclusion and References . The last one should be obvious to any of our readers, but it’s surprising to see many students overlook the introduction and conclusion sections. Teachers often expect to see a short summary that sets the background and tone for the assignment, and they most definitely want to see what conclusions the student has reached by the end of their paper based on their study and research.

To make it simple, all you need do in the introduction is to give a brief overview of the topic which your paper is about, why this topic is relevant and important. In the conclusions section, you just need to summarize your research process, what you’ve learnt about the topic along the way and any final inferences.

These aren’t sections that you would have to do separate research for – if you’ve done your paper by yourself, you should be able to easily write a conclusion for it in no less than an hour (and we’re being very liberal with that estimation).

This is an easy to way to add in some additional words, which brings you closer to the required word count and reducing the words that you need to write for the other sections too, so why wouldn’t you want to do this, right?

As we have covered in our separate guide on how to manage word count of assignments , the introduction and conclusion sections are almost always included in the word count unless explicitly mentioned otherwise. You should be able to allocate about 200 to 300 words of the word count allowance to each of sections. This would cut down the amount of fresh content you need by about 400 to 600 words right off the bat!

Another critical section to be included in nearly all assignments would be a Table of Contents section. We have a full guide on how to easily make a good table of contents section which your teachers will be grateful to have when they are checking your work!

What are the circumstantial parts in assignment structure?

Moving on to the main part of your assignment, you could have a whole variety of headings and subheadings based on the type of paper that you are writing. Typically,

For thesis and dissertations, an Abstract section is almost always expected. Even if it hasn’t been specifically requested, we would highly recommend including this section for such long format papers because its purpose is to guide the readers with a ‘hook’ and make them more interested in reading your paper.

You can think of this section as a short summary of the main points from each of the broader headings in your paper. You don’t need to have more than 200 words for this section, and it shouldn’t be that hard to write as soon as you are done with your paper since the content that you’ve written should still be fresh in your mind.

The Rationale section is also expected in papers with longer word counts, especially those which are research oriented. In this section, you just need to explain the background of your chosen topic or research problem and why it is relevant and significant. You are expected to justify the need for your research on this topic. Some other research-oriented subsections include Research Aim & Objectives and Research Question , which you may potentially need, especially for long-form writing such as theses and dissertations.

Literature Review is a heading which can be considered as almost essential for most assignments since teachers want to see what external reading you have done on existing academic theory. The reason we have included this in the circumstantial section rather than the essential section above is because there are occasionally some assignments for which teachers explicitly mention not to define or explain academic theory and instead, they expect to see your understanding through direct application to the case.

This type of scenario typically arises when the word count for the assignment is not that high, so a full-blown literature review could be seen as ‘word-padding’ and have a negative impact on your overall grade for that assignment. We go over this issue of word-padding and how you can avoid it in a separate guide on managing word count as mentioned earlier.

A couple of sections that you can include in assignments where you are focusing on a particular industry or company are External Analysis and Internal Analysis respectively. As we cover in our guide on common academic words and what they mean, these are also known as Situational Analysis and Company Analysis , or Macro-analysis and Micro-analysis respectively. For company analysis, SWOT analysis one of the most common tools that are used, while another tool called TOWS is also occasionally used to combine internal and external analysis. Here’s a guide explaining the difference between SWOT and TOWS analysis .

Conceptual Framework is another circumstantial subsection which you may want to add if your research revolves around identifying independent and dependent variables.

For papers which require some research to be done as part of the assignment, you are going to need some sections like Methodology , Findings, Discussion and Analysis .

Within Methodology, you might have other subsections like Data Collection , Sampling Method etc.

What are some additional parts in assignment structure?

A section on Ethical Consent is often expected within the Research Methodology heading if your paper involves primary research gathered from respondents. We have a guide on ethical consent here and you can also check out our resources page to get a free sample ethical consent form which you could use in your papers (but be sure to also check out our guide on how to avoid getting flagged incorrectly for plagiarism so that you do not get wrongly flagged for plagiarism by using this sample form).

For research-oriented assignments, another typical expectation (although it isn’t always the case) is for a Research Timeline which illustrates the research process. This is often presented visually, and we have a separate guide on how to make good Gantt Charts easily using some of our free templates which you can find in our resources section.

Recommendations , and Limitations are also sometimes expected in some assignments, especially those that are long form, such as detailed research work.

If you have a lot of tables and figures in your work, which is usually the case for thesis and dissertations, you should also try to add a list of tables and figures (separate list for each).

Another section that you may wish to include in your assignments, especially if you have too many images or tables within your work, or if these are not to be included in the word count or in the body of the assignment, is the Appendix section. This is just a list of the additional content that is of direct relevance to your research adds to the quality and depth of your assignment. This section is typically not included in the word count allowance. Hence, it is often used to show that you have covered more ground in your research, but could not include it in main body due to word count limitation.

How to plan structure for essay assignments

Unlike standard academic reports, essays typically do not have subheadings but are instead expected to be structured in a logical way such that you transition from one idea to another by interlinking them.

However, we have come across some essay requirements in which the teachers have specifically asked for subheadings that indicate the central theme or idea which is being discussed in each section. If you are going to have subheadings in an essay though, then you should avoid numbering them as you would in other academic papers.

Taking assignment structures from the requirements files

Most teachers expect to see a standard structure in their assignments which helps them identify and assess the key learning outcomes of the module or the assignment. It is often the case that they will leave you some breadcrumbs by spelling out an assignment outline clearly within the requirements file, or in the presentations linked to the coursework, or perhaps during their lectures.

Sometimes, a structure would not have been defined clearly in the assignment requirements file, but there are ways to still get an almost explicit list of necessary headings such as by dissecting the marking guidelines which your tutors typically provide. We cover this in our guide on how to get better grades using a surefire method of drafting an outline which matches what the teachers are expecting.

Other teachers like to spice things up and give you free rein to structure your paper anyway you see it, but with this freedom of choice, you may find yourselves lost if you’re quite new to academic writing. In any of these cases, you can go over the upcoming list of standard sections and subsections that are present in academic papers to cross-check whether you have covered the relevant parts in your papers.

Leave a Comment Cancel reply

Save my name, email, and website in this browser for the next time I comment.

Privacy Overview

California bill targeting 'housing-shortage profiteers' by limiting ownership passes Assembly

• The bill would prevent businesses from buying more than 1,000 single-family home properties and renting them out.
• Democratic Rep. Alex Lee says that while the bill won't solve the state's housing crisis, it targets the most egregious corprations.
• The bill has been passed to the Senate Rules Committee for assignment to a policy committee.

A bill limiting the number of houses that a corporation can buy has passed the California State Assembly and is now in the state Senate.

AB 2584, introduced by Democratic Rep. Alex Lee , would prevent businesses from buying more than 1,000 single-family home properties and renting them out, as enforced by the state's Attorney General. Lee says such institutional investors profit off of real estate markets with increasing rents while outbidding everyday Californians who are trying to buy homes.

The vote passed the Democratic-controlled Assembly on Tuesday with 48 in favor and 11 against, with at least two Republicans showing support.

California has some of the fastest-rising housing costs in the country. In April, the median home-sale price surpassed $900,000 for the first time in history.

Lee acknowledges that his bill alone will not solve that problem.

Prep for the polls: See who is running for president and compare where they stand on key issues in our Voter Guide

"I would never say this is a silver bullet to the housing crisis," Lee told USA TODAY in an interview Thursday. "This is really mitigating harm, because these corporations are housing-shortage profiteers."

Corporate homebuyer ban would apply to 1% of home purchases

Data from the California Bureau of Research shows three companies already own more than 1,000 single-family homes each, and that a fourth more is just shy at 977. Invitation Homes, which was once owned by private equity firm Blackstone and owned the most homes in the state at approximately 12,000 houses as of December − according to the company's filings − did not respond to USA TODAY's request for comment.

Lee said he chose the 1,000 cap based off another housing bill that moved to the state Senate in January. AB 1333 aims to limit investors from buying new developments in bulk if the corporation already owns 1,000 units.

"We wanted to make it very clear that we're not affecting Grandma here. You know, Grandma got three houses, she rents them out down the street," Lee said about the 1,000 limit. "We're talking about Blackstone."

A bill analysis shows that businesses owning more than 1,000 homes made up less than 1% of California home purchases in 2023. But that's not insignificant, Lee said.

"Half of Californians literally own zero (percent), so four actors owning 1% is a significant amount," Lee said.

Corporate homeownership limit opposed by realtor, rental associations

The Alliance for Californians for Community Empowerment supports the measure, saying it could "even the playing field and stop the corporate buy-out of single-family neighborhoods," according to the Assembly Floor bill analysis.

The California Association of Realtors, which opposes the bill, could not be reached for comment but in arguments submitted to the Legislature, said that the proposed law "lacks clarity."

The National Rental Home Council, which also opposes the bill, said in the analysis that the proposal is targeting a small group and that many corporate housing investors have been net-sellers in the last few years.

"Institutional owners of housing are able to bring rental housing products to the market more rapidly than some other potential rental property owners," the group said in a statement. "Our member companies bring choice to prospective renters who may wish to have a single-family home."

The California Chamber of Commerce and the California Building Industry Association both suggested further amendments.

The bill had its first reading in the Senate on Wednesday and has been passed to the Senate Rules Committee for assignment to a policy committee. If it passes the Senate, the bill would head to Democratic Gov. Gavin Newsom's desk.

The Key Points at the top of this article were created with the assistance of Artificial Intelligence (AI) and reviewed by a journalist before publication. No other parts of the article were generated using AI. Learn more .

• Today's news
• Reviews and deals
• Climate change
• 2024 election
• Fall allergies
• Health news
• Mental health
• Sexual health
• Family health
• So mini ways
• Unapologetically
• Buying guides

Entertainment

• How to Watch
• My Portfolio
• Latest News
• Stock Market
• Premium News
• Biden Economy
• EV Deep Dive
• Stocks: Most Actives
• Stocks: Gainers
• Stocks: Losers
• Trending Tickers
• World Indices
• US Treasury Bonds
• Top Mutual Funds
• Highest Open Interest
• Highest Implied Volatility
• Stock Comparison
• Advanced Charts
• Currency Converter
• Basic Materials
• Communication Services
• Consumer Cyclical
• Consumer Defensive
• Financial Services
• Industrials
• Real Estate
• Mutual Funds
• Credit cards
• Balance Transfer Cards
• Cash-back Cards
• Rewards Cards
• Travel Cards
• Personal Loans
• Student Loans
• Car Insurance
• Morning Brief
• Market Domination
• Market Domination Overtime
• Asking for a Trend
• Opening Bid
• Stocks in Translation
• Lead This Way
• Good Buy or Goodbye?
• Fantasy football
• Pro Pick 'Em
• College Pick 'Em
• Fantasy baseball
• Fantasy hockey
• Fantasy basketball
• Download the app
• Daily fantasy
• Scores and schedules
• GameChannel
• World Baseball Classic
• Premier League
• CONCACAF League
• Champions League
• Motorsports
• Horse racing
• Newsletters

New on Yahoo

• Privacy Dashboard

Yahoo Finance

Gamesquare announces formation of faze media, a creator-led ip and media company, led by ceo faze banks and backed by $11 million investment from matt kalish.

FRISCO, TX / ACCESSWIRE / May 16, 2024 / GameSquare Holdings, Inc. (NASDAQ:GAME), ("GameSquare", or the "Company"), after recently completing the acquisition of FaZe Clan on March 8, 2024, today announces the formation of FaZe Media . This new company combines the FaZe creator talent roster and non-esports assets into a creator-led IP and internet media company under the leadership of CEO FaZe Banks, an original FaZe Clan founder. In addition, FaZe Media has closed $11 million in new investment capital from Matt Kalish, who will also become a board member of FaZe Media. GameSquare will provide certain corporate and agency services to FaZe Media as part of the agreement.

FaZe Media is focused on building on the value of the FaZe brand IP and returning creative control of the brand to its founding leaders who made the FaZe brand an internet media juggernaut. Refreshing the roster of creator talent and developing compelling content with the internet's favorite personalities will enable FaZe Media to become a valuable media company within the creator economy. FaZe Media will seek to expand the licensing and sponsorship opportunities for the FaZe brand across many categories, as well as deliver product, merchandise, in real life, online events and more under the FaZe brand.

When FaZe Clan relaunched the brand on April 27, 2024, it experienced unprecedented engagement across social media platforms and was the #1 trending topic on X (formerly Twitter) in the U.S. In addition, FaZe Clan's search interest was the strongest the brand has experienced on YouTube since May 2020, and on Google since May 2019, and was estimated to have over 350 million social media impressions. The internet and gaming community is captivated by FaZe Banks' return and steps he has taken to relaunch the brand and refresh the talent roster. With this successful relaunch, FaZe Clan welcomes its newest members FaZe Max, FaZe Silky, FaZe Jason, and FaZe Lacy, who will join a freshly curated roster of key talent and creators.

Justin Kenna, CEO of GameSquare stated, "Since completing the acquisition of FaZe Clan, we have focused on returning FaZe's founders to reboot their brand and reestablish its authenticity. We are thrilled to better capitalize this business for growth with $11 million in new capital from Matt, and to strengthen the FaZe Media board with his addition. Matt deeply believes in the power of founder and creator-led organizations and shares the vision to return FaZe back to its roots by empowering its creators."

FaZe Media's CEO, FaZe Banks stated, "Grateful for the opportunity at a genuine reset with FaZe Clan. Anyone that's actually tapped in can agree, this was long overdue. We've prioritized pretty much exclusively on creating a fun environment that we (as FaZe members) can find passion in, be excited about, look forward to. Do things we find interesting, exploring opportunities in content we feel are important/ relevant to our culture/ community. Partnering with Matt Kalish & GameSquare has proven paramount in this vision coming to fruition. Slowly, but surely. Exciting."

Matt Kalish, Board Member, FaZe Media stated, "My investment in FaZe Media and decision to join its board is a vote of confidence in the leadership and generational creative talent of CEO FaZe Banks, as well as that of FaZe's founders and creator roster. I believe this team, with the support of GameSquare's capabilities and infrastructure, can relaunch the FaZe brand and restore it to the gaming and internet culture juggernaut the founders had originally created."

Transaction Details FaZe Media is a new, operating subsidiary of GameSquare with the Company owning 51% of FaZe Media and Kalish owning the remaining 49%. FaZe Media will focus on developing a creator-led internet media company. FaZe Banks is the CEO of FaZe Media, with Kalish and Kenna serving on the board and in governance roles. GameSquare will continue to own 100% of the esports competition assets under FaZe Esports.

About GameSquare Holdings, Inc. GameSquare's (NASDAQ:GAME) mission is to revolutionize the way brands and game publishers connect with hard-to-reach Gen Z, Gen Alpha, and Millennial audiences. Our next generation media, entertainment, and technology capabilities drive compelling outcomes for creators and maximize our brand partners' return on investment. Through our purpose-built platform, we provide award winning marketing and creative services, offer leading data and analytics solutions, and amplify awareness through FaZe Clan, one of the most prominent and influential gaming organizations in the world. With an audience reach of 1 billion digitally native consumers across our media network and roster of creators, we are reshaping the landscape of digital media and immersive entertainment. GameSquare's largest investors are Dallas Cowboys owner Jerry Jones and the Goff family.

To learn more, visit www.gamesquare.com .

Forward-Looking Information This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the Company's and FaZe Media's future performance, revenue, growth and profitability; and the Company's and FaZe Media's ability to execute their business plans. These forward-looking statements are provided only to provide information currently available to us and are not intended to serve as and must not be relied on by any investor as, a guarantee, assurance or definitive statement of fact or probability. Forward-looking statements are necessarily based upon a number of estimates and assumptions which include, but are not limited to: the Company's and FaZe Media's ability to grow their business and being able to execute on their business plans, the Company being able to complete and successfully integrate acquisitions, the Company being able to recognize and capitalize on opportunities and the Company continuing to attract qualified personnel to supports its development requirements. These assumptions, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the Company's ability to achieve its objectives, the Company successfully executing its growth strategy, the ability of the Company to obtain future financings or complete offerings on acceptable terms, failure to leverage the Company's portfolio across entertainment and media platforms, dependence on the Company's key personnel and general business, economic, competitive, political and social uncertainties including impact of the COVID-19 pandemic and any variants. These risk factors are not intended to represent a complete list of the factors that could affect the Company which are discussed in the Company's most recent MD&A. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. GameSquare assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

Corporate Contact Lou Schwartz, President Phone: (216) 464-6400 Email: [email protected]

Investor Relations Andrew Berger Phone: (216) 464-6400 Email: [email protected]

Media Relations Chelsey Northern / The Untold Phone: (254) 855-4028 Email: [email protected]

SOURCE: GameSquare Holdings, Inc.

View the original press release on accesswire.com

• Share full article

Advertisement

Supported by

How MSNBC’s Leftward Tilt Delivers Ratings, and Complications

NBC’s leaders have been forced to grapple with how to square its cable news network’s embrace of progressive politics with the company’s straight-news operation.

By Jim Rutenberg and Michael M. Grynbaum

MSNBC placed a big bet on becoming comfort TV for liberals. Then it doubled down.

Time slots on the cable network once devoted to news programming are now occupied by Trump-bashing opinion hosts. The channel has become a landing spot for high-profile alumni of President Biden’s administration like Jen Psaki, who went from hosting White House press briefings to hosting her own show. On Super Tuesday, when producers aired a portion of a live speech by former President Donald J. Trump, Rachel Maddow chastised her bosses on the air.

The moves have been a hit with viewers. MSNBC has leapfrogged past its erstwhile rival CNN in the ratings and has seen viewership rise over the past year, securing second place in cable news behind the perennial leader, Fox News.

But MSNBC’s success has had unintended consequences for its parent company, NBC, an original Big Three broadcaster that still strives to appeal to a mass American audience.

NBC’s traditional political journalists have cycled between rancor and resignation that the cable network’s partisanship — a regular target of Mr. Trump — will color perceptions of their straight news reporting. Local NBC stations between the coasts have demanded, again and again, that executives in New York do more to preserve NBC’s nonpartisan brand, lest MSNBC’s blue-state bent alienate their red-state viewers.

Even Comcast, NBC’s corporate owner, which is loath to intervene in news coverage, took the rare step of conveying its concern to MSNBC’s leaders when some hosts and guests criticized Israel as the Hamas attack was unfolding on Oct. 7, according to three people with knowledge of the discussions. An abrupt course correction to that coverage followed.

This account of the tensions roiling NBC and its corporate overseers is based on interviews with more than two dozen people with knowledge of the company’s inner workings, almost all of whom insisted on anonymity to share details of internal discussions.

NBC declined to make its top executives available for interviews. The chairman of the NBCUniversal News Group, Cesar Conde, has said he wants his division — which encompasses MSNBC, CNBC, a digital streaming service, Telemundo and journalistic stalwarts like “Nightly News,” “Meet the Press” and “Today” — to be a big tent.

Yet his recent efforts to include more conservative voices on the airwaves generated newsroom suspicion and ultimately led to an embarrassing rebellion over the hiring of Ronna McDaniel, a former Republican Party chair who aided Mr. Trump’s attempt to overturn his 2020 election loss.

MSNBC hosts, for their part, view their role in the political debate as more important than ever. They dismiss the accusation that MSNBC is a “Fox News for Democrats” and say their message — that Mr. Trump’s candidacy represents a unique and clear threat to democracy — is an urgent one for the electorate to hear.

And executives inside NBC’s corporate suites at Rockefeller Center say they are confident that viewers know the differences between the company’s various news brands. Any related challenges, they argue, are of a high-class sort — because their cable channels give NBC an advantage in relevance and revenue over its original Big Three competitors, ABC and CBS, which have no cable presence.

“Our strategy is built on our distinct, complementary brands including NBC News, CNBC, NBC News Now, MSNBC and Telemundo,” the NBCUniversal News Group said in a statement. “That has driven our performance as the nation’s leading news organization with the largest reach.” (Comcast does not disclose the news division’s earnings in its reports to Wall Street.)

The tensions inside NBC are, in some ways, a microcosm of the challenges facing many traditional news organizations as the country hurtles toward a tense presidential election: how to maintain trust and present neutral, fact-based reporting in a fractionalized era when partisanship carries vast financial and cultural rewards.

But the company’s challenge is also unique. It must juggle a broadcast news operation bound by traditional standards of impartiality and a cable channel increasingly bound by the partisan preferences of an intensely loyal viewership. How NBC navigates these dueling imperatives will have important implications for Comcast, a Philadelphia-based conglomerate known for its aversion to the political spotlight.

It will also have consequences for coverage of the presidential campaign. Where MSNBC’s cable news opinion-makers sustain and galvanize the Democratic faithful, the NBC broadcast network reaches millions of the potentially persuadable voters critical to both parties, which have sought to turn NBC’s internal tensions to their own advantage.

Left, Right, Left

MSNBC has caused corporate headaches since its inception.

NBC formed the channel as a joint venture with Microsoft in 1996 with the hope that it would thrust “all the value of NBC News into the cable world,” as Tom Rogers, a former NBC executive who helped found the cable network, described it in an interview.

But critics mocked the new 24-hour channel for its informal approach to news, mixing NBC’s biggest stars with younger personalities on a set reminiscent of Central Perk on “Friends.” It was almost immediately outflanked by Fox News, which followed MSNBC to market that same year and rose to the top of the cable news ratings as the first 24-hour TV channel with an overt political appeal.

MSNBC struggled with its identity. It moved to the left ahead of the Iraq war — and later moved right by hiring new hosts like the former Republican congressman Joe Scarborough. Soon it shifted leftward again, as the host Keith Olbermann hit a nerve with his strident anti-Bush — and often anti-Fox — commentary.

But when Andrew Lack, a veteran producer, took over NBC’s news division in 2015, he decided the channel needed to tone down its partisan image. Under Mr. Lack — who oversaw MSNBC’s creation in an earlier NBC stint — the cable network bumped the Rev. Al Sharpton from the weekday schedule, hired the former Fox anchor Greta Van Susteren and added more straightforward news programs, including a daily version of “Meet the Press,” NBC’s flagship political show, with Chuck Todd.

Mr. Todd was game — but would come to believe that his MSNBC duties ultimately hurt the “Meet the Press” franchise, several people at NBC said in interviews. The daily version of the show fell increasingly out of step with MSNBC’s partisan slant even as Republicans used its association with the liberal cable network to deny interview requests from the flagship Sunday edition of “Meet the Press.”

Then, Mr. Trump’s ascent shocked the Democratic base and spiked viewership of Ms. Maddow and other left-leaning hosts, whose programs became a kind of televised safe space. MSNBC’s ratings surged .

Conde Faces the Messiness

Mr. Conde succeeded Mr. Lack in spring 2020. A Wharton-trained business executive who sits on the boards of Walmart and PepsiCo, he came up through the corporate side of news, having led a turnaround at Telemundo after serving as the president of Univision Networks. Accordingly, Mr. Conde was expected to impose a more disciplined and neater corporate sensibility to the division.

He was almost immediately confronted by the messiness he had inherited.

Within a few weeks of Mr. Conde’s ascension, Mr. Trump attacked NBC when it announced the hiring of a new contributor: Lisa Page, a former F.B.I. lawyer who became a lightning rod on the right for her role in the investigation into his campaign ties to Russia. After an initial MSNBC appearance she did not show up again.

A few months later, NBC faced criticism from the other direction when it booked Mr. Trump for a prime-time interview on the night of a presidential debate that he had boycotted. (Mr. Biden was appearing at the same time on ABC.) Ms. Maddow chastised her bosses about it on the air.

That sort of partisan tumult has often riled another important constituency for Mr. Conde: NBC’s affiliated regional stations, which the company relies on to carry its major news programs to markets throughout the country.

The stations tend to be deeply embedded — and deeply trusted — in their communities. Many of them operate in red states or counties and chafed whenever MSNBC, which Mr. Trump regularly calls “MSDNC,” drew conservative ire.

Over the years the affiliates, many of which would have been thrilled to see MSNBC’s leftward tilt abandoned entirely, increasingly urged NBC executives to better distinguish its content from the NBC journalism like “Today” and “Nightly News” that they carried on their stations.

At one point after Mr. Conde took over, executives talked about the possibility of doubling down on partisanship and stripping MSNBC of news altogether, defining it as a pure opinion channel. The company would use the new NBC News Now streaming service, started under Noah Oppenheim when he was NBC News president, for 24-hour news, according to two people with knowledge of the conversations.

That idea fizzled. Mr. Conde was not prepared to entirely abandon news, but he began to better distinguish the various parts of his news division — which effectively moved MSNBC and NBC News further apart.

In the Lack era, Mr. Oppenheim of NBC News and Phil Griffin, the longtime chief of MSNBC, often worked closely as they managed a collection of stars who worked for both networks, like Mr. Todd, Craig Melvin and Hallie Jackson.

Creating more distance between the cable and broadcast outlets, Mr. Conde and Mr. Griffin’s successor, Rashida Jones, moved Mr. Todd, Ms. Jackson and Mr. Melvin off MSNBC to work exclusively at NBC News and NBC News Now. MSNBC’s daytime block of hard news shrank to six hours from eight, as the cable network extended by an hour each two opinion shows with loyal followings: “Morning Joe” featuring Mr. Scarborough and his wife Mika Brzezinski, and “Deadline: White House” with Nicolle Wallace as host.

Nothing did more to signal that MSNBC was more tightly embracing its partisan direction than Ms. Jones’s decision to hire Ms. Psaki and another Biden aide, Symone D. Sanders, straight from the White House.

It was the kind of revolving-door hiring that liberal pundits used to criticize when it happened with Fox News and the Trump administration.

It also created an awkward situation for the NBC News White House team, which was caught off guard when word that Ms. Psaki was in talks for the job leaked while she was still serving as White House press secretary.

A tense, televised confrontation followed in the White House briefing room when Kristen Welker, then NBC News’s co-chief White House correspondent, asked her future colleague: “How is it ethical to have these conversations with media outlets while you continue to have a job standing behind that podium?”

Chasing a Broad Appeal

At the same time, NBC News was going through its own changes.

Early last year, Mr. Oppenheim left his post running NBC News, and Mr. Conde split his job in three. In a jigsaw-like structure, one executive now oversaw “Today,” another “Nightly News” and NBC News Now, and a third “Meet the Press,” “Dateline” and news coverage across numerous shows and platforms.

Mr. Conde said the new setup would provide “growth opportunities,” with each show acting like its own megafranchise. “Today,” for instance, includes an e-commerce business and online sites dedicated to cooking, wellness and books.

He gave his deputies another brief: making additional efforts to ensure that news coverage reflected a wider range of political viewpoints.

Mr. Conde wanted to get Republicans back onto shows.

That was in line with an industrywide recalibration. After four years of combat between the press and Mr. Trump, media companies have sought better ways to reach Trump supporters who feel alienated from mainstream news. Television executives were also concerned that Republican elected officials were shunning their shows in favor of the congenial confines of right-wing media.

It was especially thorny for NBC, as Mr. Trump continued to yoke NBC News to MSNBC while accusing them, along with Comcast, of committing “Country Threatening Treason.”

A chance for a fresh start seemed to come last September when Ms. Welker succeeded Mr. Todd as the moderator of “Meet the Press.”

According to several people with knowledge of the internal discussions, Mr. Conde and Ms. Welker agreed that she should make booking both Mr. Trump and Mr. Biden for interviews a priority. Mr. Biden declined; Mr. Trump accepted.

But when Mr. Conde said she should schedule the Trump interview for her debut episode, Ms. Welker disagreed. Questioning the mendacious former president can be a high-wire act for even the most experienced TV interviewers, and Ms. Welker did not think it was a wise way to introduce herself to viewers. She acquiesced only after coaxing from Mr. Conde and several of his deputies.

Ms. Welker worked to fact-check Mr. Trump in real time while also eliciting an admission that he ignored his own campaign lawyers when they told him there was no evidence the 2020 presidential election results were rigged. Mr. Trump steamrolled ahead with a litany of lies nonetheless. The interview was panned on social media — complete with a “#boycottmeetthepress” campaign — but was deemed a success by Mr. Conde.

Mr. Conde and Rebecca Blumenstein, a former editor at The New York Times whom Mr. Conde hired as one of his top deputies, also worked aggressively to secure a Republican primary debate in fall 2023, pitching Ms. McDaniel and other Republican officials in person.

They succeeded, but only after accepting terms that unsettled some journalists within the company. NBC agreed to include a moderator from a right-wing media company, Salem Radio, and stream the debate live on Rumble, a video site that frequently hosts pro-Nazi and other extremist content. (NBC executives have defended the decision, noting that Rumble was already the party’s official streamer and had no editorial input.)

The debate received good marks in the press. And in general, red-state affiliates felt that Mr. Conde was doing a better job of bringing balance to NBC News, according to an executive at one company that owns affiliates.

Reverberations Continue

Each network was now set on its own distinct course: MSNBC toward more partisan and progressive opinion, and NBC News toward Mr. Conde’s commitment to “presenting our audiences with a widely diverse set of viewpoints and experiences,” as he put it.

But each tripped over the limits of its approach in an election landscape already littered with ideological tripwires.

When Hamas staged its terror attack against Israel on Oct. 7, MSNBC mixed breaking news of the attacks with discussions about the historical backdrop of Israel’s treatment of Palestinians. The coverage reflected views on the left — and presaged the pro-Palestinian demonstrations that would soon grow in number — but it struck many others as discordant, or even offensive, given that the violence was still coming into view.

“I love this network, but I’ve got to ask: Who’s writing your scripts? Hamas?” Jonathan Greenblatt, the Anti-Defamation League chief executive, asked two days later on “Morning Joe.”

Some of the blowback came from within.

In a call with Mr. Conde, Michael Cavanagh, the president of Comcast, who oversees NBC, shared concerns about that initial coverage, according to three people with knowledge of the discussions. Mr. Conde harbored the same concerns, according to a person briefed on their conversation, and he directed MSNBC to be more circumspect and to focus on facts, not opinions, in those initial days.

Five months later, Mr. Conde thought he had achieved a milestone at NBC News in his efforts to integrate right-wing perspectives into its programming. At the recommendation of Ms. Blumenstein and Carrie Budoff Brown, who oversees political coverage, Mr. Conde hired Ms. McDaniel, the former Republican Party chair, as a contributor who could offer on-air commentary.

If the hiring was in service of Mr. Conde’s goal of adding balance, it came as an unwelcome surprise to NBC’s ranks of correspondents, hosts and anchors. Ms. Welker had booked Ms. McDaniel for her next episode of “Meet the Press” — as a guest, not as a colleague. In the interview, she grilled Ms. McDaniel about her role in Mr. Trump’s effort to overturn the 2020 election result, actions that many at NBC and MSNBC viewed as disqualifying for a job there.

Mr. Todd, appearing as a guest on that day’s episode, unleashed a live, on-air denunciation of his bosses after the interview that left the control room in stunned silence. His rebellion carried over the next day on MSNBC, from “Morning Joe” up through “The Rachel Maddow Show.” Under pressure, Mr. Conde broke the deal with Ms. McDaniel, a move that only served to upset the Republicans he was trying to attract.

In the aftermath, NBC’s public stumble turned into a point of contention on the presidential campaign trail. The Republican Party said it was weighing an attempt to restrict NBC News at this summer’s convention, while Mr. Trump yet again bashed “Fake News NBC.”

Aides to Mr. Biden were also perturbed about the McDaniel hire, viewing it as part of a broader attempt by NBC News to overcompensate for MSNBC’s decidedly pro-Biden stance. In private conversations with NBC correspondents, Biden aides have argued that “Nightly News,” whose huge audience is of critical political importance to the campaign, was taking it easy on Mr. Trump and treating Mr. Biden too harshly.

Executives at NBC dismissed these complaints, saying the partisan brickbats simply come with the territory. They believe that each campaign will use anything at its disposal to pressure news organizations for more favorable coverage.

The company pointed to comments made by Mr. Conde after the McDaniel imbroglio: “We will redouble our efforts to seek voices that represent different parts of the political spectrum.” It also shared data intended to show strong performance across its cable, broadcast and online operations.

The message was clear. Regardless of any turbulence, NBC has no plans to change course.

Jim Rutenberg is a writer at large for The Times and The New York Times Magazine and writes most often about media and politics. More about Jim Rutenberg

Michael M. Grynbaum writes about the intersection of media, politics and culture. He has been a media correspondent at The Times since 2016. More about Michael M. Grynbaum