Commencement of Business:
A public company can commence business only after getting certificate of commencement of business from the Registrar.
The company must file the following documents to obtain the certificate of commencement of business.
1. Declaration that the minimum subscription has been received in cash to allot shares.
2. A declaration that all directors have taken up and paid for their qualification shares
3. A statutory declaration stating that necessary legal formalities have been complied with has to be filed.
The Registrar shall examine these documents. If these are found satisfactory, a ‘Certificate of Commencement of Business’ will be issued. This certificate is conclusive evidence that the company is entitled to do business. With the grant of this certificate the formation of a public company is complete and the company can legally start doing business. Documents used in the formation of a company.
