Multiple choice

Which of the following is correct?

(a) A company can commence its business without obtaining Certificate of Commencement of business, if it is a private company. (b) A company can commence its business without obtaining Certificate of Commencement of business, if it is a company without any share capital. (c) A company can commence its business after obtaining Certificate of Commencement of business u/s 125, if it is a public company.

  1. Only (a) and (c)

  2. Only (a) and (b)

  3. Only (b) and (c)

  4. All of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Private companies are not required to obtain a Certificate of Commencement. Also, companies without any share capital do not need such formalities. Thus, (a) and (b) are true. For public companies, Certificate of Commencement is required.

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