Company Law

While registering a company brings many benefits, it’s also important to consider the potential downsides. This article explores the disadvantages associated of registering a company and the factors entrepreneurs should weigh before making this significant decision.

“Company” means a company incorporated under Companies Act, 2013 or under any previous companies act. A company is a separate legal entity formed to carry out business activities. Being a separate legal entity, it can own properties in its own name. A company can enter into transactions in its own name, can sue and also be sued in its name.

The Doctrine of Lifting the Corporate Veil is a legal concept that allows the courts to disregard the corporate personality and look beyond the legal façade of a corporation or business entity. A company is a legal entity having a separate identity from the persons incorporating it. A company’s separate legal entity is a legal privilege that should be used only for lawful business activities.