Compared to other types of business association, an incorporated company has the following advantages:
- Corporate Personality – The corporate body has its own existence and is considered a distinct entity. The corporate body is capable of performing all the functions.
- Limited Liability – The privilege of limiting the liability is one of the main advantages of doing business under the corporate form of organization.
- Perpetual Succession – Member may come and member may go but the company can go on forever unless it is wound up in accordance with the Companies Act.
- Transferable Shares – The shares are the movable property and can be en-cashed by the shareholders at any time.
- Separate Property – The property of the company is not the property of the shareholders, it is the property of the company as it is a legal entity capable of owning its funds and other assets.
- Capacity to Sue – A company can sue others in its name and also be sued by others.
- Flexibility and Autonomy – The company has independence to form its own policies ad implement them, subject to the general principles of law.
