Question

Justify the following statement.

Certificate of Incorporation is like a Birth Certificate of a company

Answer 1

(1) a certificate in the prescribed form issued by the Registrar of Companies to the company after its registration, signifying its birth is called the Certificate of Incorporation. Certificate of the corporation is like a Birth certificate of the company because the company, came into existence from the date of the issue of a certificate of incorporation. It is legal proof of the fact that the company is incorporated.

(2) After getting the certificate of incorporation, a company becomes a legal or artificial person having a distinct identity or personality. Although it has no body, soul, and physical existence, still it recognizes as a person in the eyes of law. After incorporation, the company gets separated from its members. It becomes a body corporate having a perpetual succession from the date of its incorporation.