What is a company's legal identity?

 A company is considered as a juristic person with a perpetual succession and a common seal. Its life does not depend upon the life of its members, who can change from time to time. On registration, a company acquires a personality distinct from its members.

A company can sue and be sued in its own name. It can institute and defend suits and other legal proceedings in its own name. A company has limited liability. The privilege of limited liability for business debts is one of the principal advantages of doing business in the corporate form. In a company limited by shares, liability of the members is limited to the unpaid value of the shares, whereas in a company limited by guarantee, liability of members is limited to such amount as the member may undertake to contribute to the assets of company in the event of it being wound up.