Justify the following statement:

Registration of Joint Stock Company is compulsory.

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1 Answers

  • In India, the Joint Stock Companies are governed by the Companies Act, 2013.
  • Every company has to be registered under the Companies Act, 2013.
  • Registration gives birth to a company.
  • On registration, the company gets a separate legal entity/identity.
  • Without registration, no company can come into existence.
  • After getting a registration certificate, it becomes a corporate body.
  • So, the registration of a Joint Stock Company is compulsory and not optional.
  • Thus, registration of a Joint Stock Company is compulsory.

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