Under Companies Act, 1956 Company can start its business after taking Certificate of Incorporation, but now under new Companies Act, 2013 a Company can start its business only after taking Certificate of Commencement.
so, can a Company can allot share shares to new shareholder after company is incorporated or new shares can be alloted after taking Certficate of Commencement.
Allotment of shares is not considered as commencement of business. Hence we can allot shares even before getting certificate of commencement of business.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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