Why Do Public Companies Need a Certificate of Commencement but Private Ones Don't?

sohail1979
Kindly tell me why we, a public limited company, use a Certificate of Commencement of Business not in a Private Limited company?

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In a public limited company, the Certificate of Commencement of Business is required to commence business activities, as per legal regulations. This certificate is necessary to ensure that the company has met all the statutory requirements before starting its operations. On the other hand, a Private Limited company does not necessarily need this certificate as they have different compliance requirements under the Companies Act. The distinction in the usage of this certificate between the two types of companies lies in their regulatory obligations and the legal framework governing their operations.
svijayarangam
In addition to the Certificate of Incorporation, which is issued at the registration of the name of the company, the Certificate of Commencement of Business is the one that states the date of the company coming into existence.
svijayarangam
Though a private company can commence business immediately after obtaining the certificate of incorporation from RoC, a public company cannot until it obtains a Certificate of Commencement of Business from the RoC. This is issued only after it files the prospectus inviting subscription for the issue of shares or a statement to the effect that no funds are being solicited from the public.
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