The Registrar, upon scrutinising the declaration, if satisfied that all the formalities have been followed, then issues a certificate known as the Certificate of Commencement of business to the Company.

A Public Company is entitled to commence its business activities only after the Commencement Certificate has been obtained from the Registrar of Companies. No public company can start its business without obtaining the Certificate of Commencement of business. This is the last stage in the formation of a public company.