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Company formation is the process of legally incorporating a business entity. The key steps involved are as follows:

1. Promotion: This initial phase involves generating the business idea, conducting feasibility studies, and preparing the necessary documentation.
2. Incorporation: This step includes registering the company with the relevant government authorities, such as the Ministry of Corporate Affairs in India, and obtaining a Certificate of Incorporation.
3. Capital Subscription: In this phase, the company raises the necessary capital by issuing shares to the public or private investors.
4. Commencement of Business: Finally, the company begins its operations after fulfilling all legal requirements and obtaining necessary licenses.