Distinguish between Certificate of Incorporation and Certificate of commencement of Business.
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A certificate of incorporation is a legal document relating to the formation of a company or corporation. It is a license to form a corporation issued by state government or, in some jurisdictions, by non-governmental entity. Its precise meaning depends upon the legal system in which it is used.
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Under Companies Act 2013, the date of incorporation of a company cannot be the date of commencement of business (COB). From the point of commencement of Business companies may be divided into 2 categories:
Public and Private Companies not having Share Capital
A public company or a private limited company not having share capital are not required to comply with any other formalities and may commence its business activities immediately after obtaining the certificate of incorporation from the concerned Registrar of Companies.
Public and Private Companies having Share Capital
As per section 11 of Companies Act, 2013, now all newly incorporated Public and Private Companies having Share Capital would be required to obtain certificate of commencement of business from concerned Registrar of Companies before commencing the business or exercise of borrowing powers.
Through this article we discuss the procedure for obtaining certificate of commencement of Business under Companies Act, 2013. For statutory provisions related to commencement of Business one can refer to the following sources:
Section 11 of Companies Act, 2013
Rule 24 of Companies (Incorporation) Rules, 2014
A certificate of incorporation is a legal document relating to the formation of a company or corporation. It is a license to form a corporation issued by state government or, in some jurisdictions, by non-governmental entity.
Its precise meaning depends upon the legal system in which it is used.
—————————————————————————————————
Under Companies Act 2013, the date of incorporation of a company cannot be the date of commencement of business (COB). From the point of commencement of Business companies may be divided into 2 categories:
Public and Private Companies not having Share Capital
A public company or a private limited company not having share capital are not required to comply with any other formalities and may commence its business activities immediately after obtaining the certificate of incorporation from the concerned Registrar of Companies.
Public and Private Companies having Share Capital
As per section 11 of Companies Act, 2013, now all newly incorporated Public and Private Companies having Share Capital would be required to obtain certificate of commencement of business from concerned Registrar of Companies before commencing the business or exercise of borrowing powers.
Through this article we discuss the procedure for obtaining certificate of commencement of Business under Companies Act, 2013. For statutory provisions related to commencement of Business one can refer to the following sources:
Section 11 of Companies Act, 2013
Rule 24 of Companies (Incorporation) Rules, 2014
A certificate of incorporation is a legal document relating to the formation of a company or corporation. It is a license to form a corporation issued by state government or, in some jurisdictions, by non-governmental entity.
Its precise meaning depends upon the legal system in which it is used.
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