Company’s Definition

• Company is registered association which is an artificial legal person,

having an independent legal, entity with a perpetual succession, a
common seal for its signatures, a common capital comprised of
transferable shares and carrying limited liability.
Salient Features of a Company
• Different from a sole trader and partnership
• Limited by shares
• Memorandum of Association
• Separate legal entity
• Managed by directors
• Can own other companies shares
Separate Legal Entity
• Can enter into contractual agreements
• If a company incurs a debt, the company itself is liable
• The company itself is the legal owner of its assets
• A company is personally liable to pay tax
• If a company breaks the law, it is usually the company itself that is
liable