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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.
