Key Features of a Company
The key features and characteristics of a company are as follows;
The law treats the company as a legal artificial person because it has its name and bank accounts. It can also own property under its name, file a lawsuit against other companies or personals, or be partnered up with other companies. It performs all of the activities that a person can legally do; a company can do it well. Therefore, it acts as an artificial individual.
Separate Legal Entity
When we say legal entity, what it means that it’s completely independent of its people who control its operations. In other words, the company won’t be responsible if its members don’t pay their debt. The same goes for the company as well; that the members don’t have to pay for the debt of the company, if it’s unable to pay to its creditors.
A company starts its business operations when it is registered by the law and under the ordinance of the companies act. The registration process of a company is lengthy; it should have a memorandum of association, board of directors, share prices and shareholders, a name, office, phone number, address, and other legal documentation.
The liability of shareholders is limited to their share price only; it is in the limited companies by share. On the other hand, in the case of limited companies by guarantee, where the share of contributors is like an asset in the company; if the company goes bankrupt, then the shareholders have to pay a small amounts to cover up the loss of the company.