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CSEET · Business Laws and Management · Elements of Company Law

Under the Companies Act, 2013, a company is incorporated when the Registrar, on the basis of the documents filed, does which of the following?

The Registrar issues a certificate of incorporation in the prescribed form after registering the documents and information filed. This certificate states that the proposed company is incorporated under the Act. No share allotment or commencement certificate is needed for incorporation.

  1. AIssues a certificate of incorporation in the prescribed formCorrect
  2. BApproves the first board meeting minutes
  3. CAllots shares to the subscribers
  4. DGrants a certificate to commence business

Explanation

Under section 7(2), the Registrar registers the documents and issues a certificate of incorporation stating that the proposed company is incorporated under the Act. Allotment of shares and board minutes are not conditions for incorporation. The Act as given here does not require a certificate to commence business, so that option is wrong.

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