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I’m planning to open a startup and register it as a private company very soon. Till now the company has not been incorporated but I was talking to some suppliers and one of them is giving me a very good offer which I don’t want to lose. I want to enter into a contract with him as soon as possible. Since the supplies will be used to carry out the company’s business, can I make the contract in the company’s name? I am going to incorporate it within the month itself.

Before it is incorporated, a company has no capacity to contract. So, if you want to enter into a contract with the supplier, you should do it in your name (as you are the promoter). A pre-incorporation contract is not enforceable by law and cannot even be ratified by the company later on after it is incorporated. Once you get your company incorporate...


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