Incorporated companies can be identified as a popular form of business organization which mainly represents the private sector category. An incorporated business (also called a corporation) is a type of business that offers many benefits over being a sole proprietor or partnership, including liability protection and additional tax deductions. Forming a corporation also allows you raise capital through sale of shares of your company.
Characteristics of incorporated companies
# Incorporated under the Companies Act.
# Raising capital through shareholders.
# Limited liability of the shareholders - In an incorporated company, the liability of the shareholders regarding liabilities is
limited. This means that the liability of the shareholders is limited to the value of
the shares they had bought from the company.
# Management of the company is done by directors.
# Having a continued existence - An incorporated company is a separate entity from its owners. Hence the death,
bankruptcy or full or half passivity of a shareholder does not obstruct the continuation
of the company.
# Have a separate legal personality.
