Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What are preliminary expenses?

user-image
Question added by Mohammad Ashfaq , Financial Controller , Union COOP
Date Posted: 2013/05/05
Khaja Moinuddin
by Khaja Moinuddin , Group Assistant Financial Controller , Confidential

Before incorporation and commencement of business, company and the promoters of the company may incurred so many types of expenses like statuary fees and company logo designing, in some cases rent for the office premises during the time of incorporation not after incorporation etc...
These are all comes under preliminary expenses .in simple words preliminary expenses are the expenses that spent by the promoters before the incorporation of company.
Examples: •Expenses paid for CA for incorporation of company •Expenses paid for name approve of the company •Expenses for printing of statutory documents like MOA, AOA •Stamp duties paid •Any other expenses paid to take the company into existence •Expenses for raising initial share capital Things that must be considered when creating a preliminary expenses estimate include facilities, equipment, early payroll needs, attorney fees, registration fees, and investments in initial inventory.

Aya Barad
by Aya Barad , Writer , Al Manara

They are all the cost incurred when a company is formed.

More Questions Like This