# Characteristics of a Company
A company incorporated under the Companies Act, 2013 has nine distinguishing characteristics.
## The Nine Characteristics
1. Separate Legal Entity — The company is a distinct legal person, separate from its members.
2. Limited Liability — Members' liability is limited (by shares or guarantee), except in unlimited companies.
3. Perpetual Succession — The company continues to exist regardless of changes in membership; death/insolvency of members does not affect it.
4. Separate Property — The company can own, hold, and dispose of property in its own name.
5. Transferability of Shares — Shares of a public company are freely transferable (subject to restrictions in private companies).
6. Common Seal — Traditionally the company's signature (now optional after 2015 amendment).
7. Capacity to Sue and Be Sued — The company can initiate and defend legal proceedings in its own name.
8. Separate Management — Ownership (members) and management (directors) are separate.
9. Voluntary Association for Profit — A company is a voluntary association generally formed for a profit motive (except Section 8 companies).
## Why These Matter
These characteristics flow from the foundational principle of corporate personality — that a company is a legal person distinct from its members.
## Memory Aid: 'SLPST-CCSV'
Separate legal entity, Limited liability, Perpetual succession, Separate property, Transferability of shares, Common seal, Capacity to sue, Separate management, Voluntary association.