On registration of the company when the documents required for registration of a proposed company is filed by the company along with the necessary fees. The registrar of Companies issues a Certificate that the company is incorporated. This certificate is called Certificate of Incorporation. In case of a limited company the fact that the company is limited is mentioned in the certificate [section 34]
A certificate of incorporation is conclusive as to all administrative act relating to incorporation and as to date of incorporation.
The following are the effect of incorporation:-
- It becomes a body corporate distinct from its members
- It has a perpetual succession and a common seal
- A company can sue and be sued in its own name
- The debts of company are the liabilities of the company only
- The property of the company belongs to the company and not to its members.
Therefore, the certificate of incorporation is conclusive evidence.
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