Separate Legal Entity - A company is a legal entity and established by a juristic person under the Act. Therefore a company form a group of organization which has wide legal capacity and can own property and also incur debts. The members (Shareholders/Directors) of a company have no liabilities to the creditors of a company for such debts.
Uninterrupted Existence - A company has 'perpetual succession', that is continued or uninterrupted existence until it is legally dissolved. A company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership.
Borrowing Capacity - A company enjoys better avenues for borrowing of funds. It can issue debentures, secured as well as unsecured and can also accept deposits from the public, etc. Even banking and financial institutions prefer to render large financial assistance to a company rather than partnership firms or proprietary concerns.
Easy Transferability - Shares of a company limited by shares are transferable by a shareholder to any other person. Filling and signing a share transfer form and handing over the buyer of the shares along with share certificate can easily transfer shares.
Owning Property - A company being a juristic person, can acquire, own, enjoy and alienate property in its own name. No shareholder can make any claim upon the property of the company so long as the company is a going concern.
Limited Liability - Limited Liability means the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorships and partnerships, in a limited liability company the liability of the members in respect for the debts of the company is limited.