Question

Distinguish Between Certificate of Incorporation and Trading Certificate.

Answer 1

Certificate of Incorporation:- A certificate of incorporation is a legal document relating to the formation of a company or corporation. Usually contains :

1) Name of the state 2) Business code 3) Company name 4) Company legal address 5) Quantity of Authorized share of stock 6) Value of the shares of stock. 7) The main purpose of the business.

Trading certificate:- Before trading, all public companies will need to apply for a trading certificate. Private companies do not need to apply for a trading certificate and are therefore able to trade as soon as a Certificate of Incorporation.