What is the Effect of Company Incorporation
After successfully incorporation with ACRA , Company become legal business vehicle to join business landscape.
What is the effect for being Company?
SEPARATE LEGAL ENTITY CONCEPT
Company carry concept of SEPARATE LEGAL ENTITY between company and its shareholder .
Which means that Company is able to stand alone in the eyes of law .
ABILITY TO OWN PROPERTY
Because of the Separate legal Entity concept, Company is free to own property for own used or as investment .
ABILITY TO SUE AND BE SUED UNDER COMPANY NAME
Since company carry separate legal entity, so it responsible for it own act .
Any wrong done to the Company, only Company itself can take action
Shareholder liabilities or risk taken up to the amount of their invested into the company.
Company shall exist until application to close is done and approved by ACRA .
Company’s life span does not depend on the officer or shareholder of the Company .
Unlike sole proprietor , where exist of owner means that cease of the business