A shareholder of a limited company is not personally liable for the company???s debts. They are only liable for the amount invested in the company and unpaid amount of the shares. Sole proprietors and partnerships firms are liable for all debts of the company.

A Company has 'perpetual succession' until it is legally dissolved. This implies that company is a separate entity and is not affected by the death or departure of any of its member and continues to exist irrespective of the changes in ownership.

A Company can issue equity shares, preference shares, debentures and accept the deposits with RBI permission. The Banks and Financial Institutions prefer to provide the funding to a company rather than the partnership firms or proprietary concerns.

Ownership of a business can be easily transferred to a company by transferring its shares after taking consent of shareholders. The signing, filing and transfer of a share transfer form and a share certificate are sufficient to transfer ownership of a company.

There are some major advantages of a company depending on the industry you are operating. Dividend Distribution Tax and Minimum Alternate Tax is applicable on companies and profits are taxed at a flat rate of 30%.

A company offers participants with greater flexibility in the management of the business. Partners have full authority over how they will individually contribute to the business operations.This helps the company to take faster and better decisions.