A document that declares a business is allowed to trade as a limited company

A document that declares a business is allowed to trade as a limited company

• A. Articles of Association
• B. Memorandum of Association
• C. Certificate of Incorporation
• D. Deed of Partnership

Answer: (C)

When a business becomes a limited company, the essential proof that it can trade as a separate legal entity is the Certificate of Incorporation. Issued by the Registrar of Companies, this document confirms that the company has been officially formed and registered, giving it legal status and the right to trade under its registered name. It’s like a birth certificate for the company, signaling it can operate as a distinct entity in its own right. The other documents serve different purposes: the Memorandum of Association historically outlined the company’s scope and initial share structure; the Articles of Association set out how the company is governed; and a Deed of Partnership is used for partnerships, not for limited companies.

When a business becomes a limited company, the essential proof that it can trade as a separate legal entity is the Certificate of Incorporation. Issued by the Registrar of Companies, this document confirms that the company has been officially formed and registered, giving it legal status and the right to trade under its registered name. It’s like a birth certificate for the company, signaling it can operate as a distinct entity in its own right.

The other documents serve different purposes: the Memorandum of Association historically outlined the company’s scope and initial share structure; the Articles of Association set out how the company is governed; and a Deed of Partnership is used for partnerships, not for limited companies.