If you are thinking of starting a company then it is best to get it registered beforehand. The law defines a company as an artificial person, invisible, intangible, created by or under law, with a distinct legal personality, perpetual succession, and a common seal. The company registration will give it a firm identity which will not be affected by the death, insanity, or insolvency of an individual member. Registration will ensure the company is secure and safe to carry out the business.
The members have limited liability i.e. a legal responsibility towards the company’s debts. The liability is limited to the face value of the share purchased by them.
What Will Happen After Registration?
After registration, the company will get a legal, real existence making it an artificial person created by law. It will no longer be without recognition. As a juristic person, its existence will be separate from the people who founded it and other members of the company. For the same reason, many businesses in India are carrying out their Company Registration in Kolkata.
Law provides the company recognition as an entity meaning it can sue and be sued on its own name while enjoying its own rights, bearing its own liabilities and handling its own legal proceedings. A personality will be created giving it a legal right to own its property and incur debts without the individual company members owing any liability for debts towards the company’s creditors.
Company Becomes Everlasting
Once registered and given the artificial identity, the company will become a separate legal entity where its existence will be forever unless it is legally dissolved. No amount of changes within the company whether it’s in the membership, staff, shareholders, disputes or deaths can affect its existence.
The company will remain alive forever complying to the Companies Act in spite of the death of any partners or shareholders. In case the company holders want to stop the company process, they will have to legally dissolve the company and get rid of its artificial personality by law.