A public company has to undergo four stages before commencing the business. 

These are discussed below: 

1. Promotion: Promotion includes all the steps from conception of an idea to starting of the Company, till it is formed. These include identifying business opportunity, performing feasibility studies. This stage also deals with decision of the name and appointing of bankers, lawyers, etc. who assist in preparation of necessary documents. 

2.Incorporation of the Company: The firm will furnish documents like Memorandum of Association, Articles of Association, Name and Address of Registered Office to name a few along with a fee with the Registrar of Companies Act 1956 along with a prescribed fees. A certificate of incorporation is issued along with Corporate Identity Number to the company. 

3. Capital Subscription: A public company has to raise funds in the form of shares or debentures from the public in this stage. It will seek SEBI approval and file a prospectus for inviting the investors to invest in the company. A Company can start the allotment of shares only when minimum number of shares has been subscribed and application money is received. As per Company Act the minimum subscription should be 90% of the issued capital. After the allotment and refund process, the names and address of the shareholders are shared with the Registrar. 

4. Commencement of business: After issuing the shares and receiving minimum subscription, a Public Company applies to Registrar for issue of ‘Certificate of Commencement of Business’.