Question

Distinguish between the Certificate of Incorporation and Certificate of Commencement of Business (Trading Certificate).

Answer 1

An incorporation certificate is a legal document required at the time of the formation of the company. In other words, an incorporation certificate is a license issued by the state government in order to form a company, While

Certificate of Commencement of Business is required by the public company before starting its business operations.

As per the Companies Amendment Act, 2015, Certificate of Commencement of Business is no longer required.