What is a Certificate of Trade?
This is a certificate issued to a public limited liability company also known as a joint stock company by the Registrar of Companies to commence business and exercise borrowing powers. A private company is not issued with this certificate and does not need it. Therefore, it can commence its business once it receives its certificate of incorporation.
In the case of a public company, the receipt of certificate of incorporation does not empower it to commence full business until it receives the certificate of trade. The certificate of trade is received only when the company has fulfilled certain requirements like raising the minimum required capital from the public; each director having paid for his own shares, etc.
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