Question

…………..company can start business as soon as it receives the certificate of incorporation.
(a) Joint stock (b) Private Company
(c) Public Company (d) Cooperative society

Answer 1

b) Private Company can start business as soon as it receives the certificate of incorporation.

Explanation:

• A private company could start doing business immediately after acquiring a certificate of formation under the Erstwhile Companies Act of 1956.

• Under section 149 of the Businesses Act, 1956, private companies are not required to get a certificate of commencement of business from the concerned registrar of companies.

• A private firm can begin operations after receiving its certificate of formation. The formation of a joint stock company is required.

• Without incorporation, all contracts would be worthless in the eyes of the law, and company operations would be impossible to carry out.