ADVANTAGES ACCRUING FROM THE SEPARATE LEGAL IDENTITY OF A COMPANY
Limited Liability: The main benefit of incorporating a company is to avail the advantage of having limited liability, which forms a principal feature of a registered company, and is therefore desired for investors to put money in. The concept restricts a member’s liability owed towards the company up to the value of the money left to be paid in the purchase of the shares held by him. This value is fixed. Therefore, the liability of a shareholder towards a company remains constant and does not vary or fluctuate, whether he is the original shareholder or the transferee to whom these shares have been passed on
2) Perpetual Succession: Regardless of any variance in the members of the company, the incorporated firm retains its distinct identity. Whether its members and management join or leave, the entity stays the same with the same possessions, assets, and estates, and is vested with the same powers, immunities, and privileges. The firm will continue to operate as usual while abiding by the regulations of the Companies Act until it is wound up - an individual’s death or insolvency would not affect whatsoever its corporate existence
3) Transferability of shares: An important aspect related to investment in a Private Limited Company is the concept of transferability of shares which is mentioned under Section 56 of the Companies Act, 2013. Transfer of shares means the transfer of ownership of the shares from one person to another. Any member of a company incorporated under the Companies act can sell and trade his shares in the company freely in the open market and recover the money invested. This transfer does not affect the working, management, or existence of the company in any manner. Thus, the selling of shares also serves as a mechanism for the holder to get relieved of his liabilities owed to the company
4) Separate Property: A company being a separate juristic person enjoys the right ownership and disposal of property in its name. If a company is incorporated, the advantage of it is that its assets are demarcated from the personal properties of the members of the company. Since the capital and property would belong to the body corporate, the vested title is not affected by any change in individual membership. The company is the sole owner of its assets and capitals, and the members do not function as several or joint co-owners
5) Corporate Finances: Since the shares held by a member of a registered company have the feature of transferability, large amounts of capital can be raised for the company in a small amount of time. Aside from this, the incorporation can also generate finances through shares, debentures, and public subscriptions. Financial institutions also easily sanction loans to companies, an ad is willing to do so because of their credibility, goodwill in the market, the scale of operation, and perpetual continuation
6) Centralized Management and the distinction between employment and ownership: Shareholders do not have any real concern or control over the affairs of the company, which is actually in the hands of the management. The Board of Directors is usually tasked with the function of management. Therefore, the management of the company and ownership of the company is segregated, and this incentivizes professional and capable people with experience and acumen to work for and manage the company, in an environment of independence.
7) Capacity to sue and to be sued: A company, being a juristic person in the eyes of the law, has the full right to protect and defend its good name, and can therefore file a case in case any damage and imputation is made on its fair name and can seek due compensation if it is defamed in any way to affect its business or credibility. If a criminal complaint is being filed by a company, it must be represented as a party to the dispute by a natural person on its behalf.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.