We require a large amount of money to setup a business in today's world. The element of risk has been increasing due to improving environment and fast technological development. And hence for setting up of medium and large size of organizations the company format is being preferred. The steps involved from the occurrence of the idea till the company starts functioning are known as the stages of formation of company. People who take these steps along with the associated risks involved are called promoters of the company. The present chapter deals with all the above stated information.