Prospectus — SPCC STD 11 Commerce — Question

A private company does not require to get the certificate of commencement of Business like public limited company. It can start its business after receiving the certificate of incorporation. As such the provision of issuing the prospectus and that of minimum Subscription is not applicable to a private company. A private company cannot invite the public to purchase shares or debentures by issufng a prospectus. The Companies Act has restricted the private company to issue the prospectus and the private company should mention about this in its Articles of Association.