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Course 1141 — Fundamentals of BusinessIssue **prospectus** (SEBI-compliant document with company details, financials, risk factors, share terms). Receive applications and minimum subscription (90% of issued amount under SEBI rules). If not received, refund within prescribed time.#### Stage 4 — Commencement of Business (Public companies only)File declaration of compliance with RoC: minimum subscription received, directors paid share amounts, no refund liability. RoC issues **Certificate of Commencement of Business**. Only then can public company start operations.Figure 1: Four stages of company formation — private companies/OPCs start after Stage 2; public companies need all four stages.Common mistake: Only public companies need Certificate of Commencement. Private companies and OPCs start after Certificate of Incorporation. Tested frequently.Documents Used in Company FormationKey Incorporation DocumentsFundamental charter — scope, capital, foundersCA/CS certifies compliance with ActOwnership/rental agreement + NOC**Subscriber/director particulars**Invitation to public to subscribe sharesCompliance with commencement requirementsThe **MoA** is the company's charter — defines its relationship with the outside world. Acts beyond it are **ultra vires** (void). Altered only by special resolution (75% majority); some clauses need RoC/Central Govt approval.Company name with "Private Limited" or "Limited"Must not be identical/similar to existing name. No prohibited words without permission.State where registered office is locatedOnly state in MoA; full address filed within 30 days of incorporation.Purpose for which company is formedMain + ancillary objects. Ultra vires doctrine relaxed under 2013 Act but clause still defines scope.Nature of members' liabilityStates "limited by shares" — declaratory, as this is already established by law.Authorised share capital and its division