Pre-incorporation expenses

Pre-incorporation Expense means all costs incurred in the formation of a firm (Incorporation or Registration of a company), it will include advertising, promotional activities, employee training, etc.,This includes all expenses like purchasing material, management expenses for formation etc. This expenses are shown under the head Misc Expenditure and are amortized over a period of 5 yrs as a deferred tax asset.

-- preliminary analysis of the conceived idea, 
--detailed investigation in terms of technical feasibility and commercial viability to establish the soundness of the proposition, 
-- preparation of ‘project report’ or ‘feasibility report’ and its verification through independent appraisal authority (before giving final approval to the proposition) and 
-- organisation of funds, property and managerial ability and assembling of other business elements.