Why to form a company ? There are different forms of organisations to choose from to do business such as sole proprietorship, partnership, co-operative societies, and joint stock company. Each one of these organisations has special features and characteristics of its own. The company as a form business organization that has come to acquire a pre- eminent position in modern times.Its superiority over other forms of business organisation is due to the following special characteristics : Distinct legal entity : On registration a company acquires a distinct legal entity of its own capable of assets, incurring liabilities and debts, charging and being claimed. A partnership firm on the other hand has no independent existence apart from its partners in the legal entity . Limited Liability of a company member: A company members liability is limited to the duration they have contributed or have undertaken to contribute to the capital of the company.The credito...
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