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Certificate of incorporation


Certificate of incorporation is issued in the following situation
                                                        i.            On registration of a company.
                                                      ii.            On the change of the name of a company / amended certificate to be issued.
                                                    iii.            On the request of a person on payment of prescribed fee as laid down in 
                                          section 466 (6).     
Commencement of business by a Private Company under Sec 146 (6)
A private company can start its business on issuance of certificate of incorporation, meaning thereby that private company can enter into binding contracts and also exercise borrowing powers.
A company shall not commence any business or exercise any borrowing powers unless:
Shares held subject to the payment of the whole amount thereof in cash  have been allotted to an amount not less in the whole than the minimum subscription.
Every director of the company has paid to the company full amount on each of the shares taken or contracted to be taken by him and for which he is liable to pay in cash.
No money is or may become liable to be repaid to applicants for any shares or debentures which have been offered for public subscription by reason of any failure to apply for or to obtain permission for the share or debentures to be dealt in on any stock exchange.
There has been filed with the registrar a duly verified declaration by the chief executive or one of the directors and the secretary in the prescribed form that the aforesaid conditions have been complied with and the registrar has issued a certificate referred to in sub section 2, and
In the case of a company which has not issued a prospectus inviting the public subscribe for its shares, there has been filed with the registrar a statement in lieu of prospectus.
A public company cannot start business on issuance of certificate of incorporation.
Certificate of commencement of business is necessary for public company.

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