28/6/2019

Pre incorporation Contract: Its Validity and Enforceability

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The prime characteristic of the company structure is separate legal identity, which allows it to enter into contract with parties and own assets in its own name. A company obtains the legal identity after its incorporation and registration in India. However, more often, it is observed that the promoters enter into contract with third parties even before pvt ltd company registration in India, whether for the registration purpose itself or otherwise. Here, we are discussing whether these contracts made in name of promoters are valid or not. These contracts are known as promoter’s contract or pre-incorporation contract in legal terms.

Read More :- Pre incorporation Contract: Its Validity and Enforceability
Tags: private limited company registration / pvt ltd company registration / register a private limited company

 

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