Question

Name the document by which a company becomes a distinct legal entity.

Answer 1

Certificate of incorporation is a legal document required at the time of company formation. It is said to be a license to form a company, issued by the state government. The company in India is measured by the shares that is a shareholders is only liable to a limit of creditors. A Pvt. limited company cannot offer their share to general public, so it cannot trade on the public stock exchanges, the main difference between a Private limited and public limited company. The company has to suffix limited or incorporation or limited co. as the name is the reason to know whether it is private or a public company.