Question

A private company can commence business

Answer 1

Answer: It is fully possible for a private company to commence a business in this time after its incorporation. There have been several acts made to promote the commencements of business by private companies. Under the erstwhile Companies Act, 1956, a private company could start its business immediately upon receiving a certificate of incorporation. Private companies do not require to obtain a certificate of commencement of business from concerned Registrar of Companies under section 149 of Companies Act, 1956.

Explanation: After declaration and certification, the private company is legalized as a business company.