1.

Perpetual succession

The life of the company does not depend upon the life of any of its members; it is
independent from the lives of its members.
Even the death, insolvency, mental disorder or retirement of a member does not affect
the corporate existence of the company.
It is created by the process of law and can be put to an end only by the process of law.
Members may come and go out the company will carry on to exist unless it is wound
up. The companies continuous to exist even if it’s all members are dead.

2. Transferability of shares

Shares can be transferred from a shareholder to another person. Shares are

transferred by way of gift or sale. Typically, shares are transferred to introduce a
new shareholder. So long as a company has enough shares, it’s possible to transfer
shares in a limited company any time after incorporation. Before you take any
action on changing your share structure within your company contact your
Account Manager so we can understand and advise on your plans.

3. Limited liability

Limited liability is a form of legal protection for shareholders and owners that
prevents individuals from being held personally responsible for their company’s
debts or financial losses. Directors cannot be held personally liable for company
debts (unless they are shareholders in which cases the rules already explained
apply) The same goes for legal threats. When a company is sued, it is the legal
structure that is the company which is being sued, not the individuals involved.

4. Corporate personality
As per the law, a corporation is an artificial person. It has the ability to enjoy rights,
fulfil its duties and hold property in its own name. Hence, the concept of corporate
personality is a singular creation of the law. The best example of this is the corporate
personality of a company under the Companies Act, 2013. Such a corporation under
the law has a legal identity of its own. Such a corporation is represented by its
members and agents. However, unlike a natural person, these corporations have a
perpetual existence. Such companies and corporations can sue and even be sued
upon.

5. One-man company

A one-person company as a company that has only one person as to its member.
Furthermore, members of a company are nothing but subscribers to its
memorandum of association, or its shareholders. So, an OPC is effectively a
company that has only one shareholder as its member. Such companies are
generally created when there is only one founder/promoter for the business.
Entrepreneurs whose businesses lie in early stages prefer to create OPCs instead
of sole proprietorship business because of the several advantages that OPCs
offer.