# Effect of Registration — Section 9
## What does Section 9 do?
Section 9 spells out the legal consequences of a company's registration. It is the section that transforms a paper application into a separate legal person.
## The Statutory Effect
From the date of incorporation specified in the Certificate of Incorporation:
1. The subscribers to the memorandum, and
2. All other persons who may, from time to time, become members of the company,
— shall become a body corporate by the name contained in the memorandum.
## Powers of the Body Corporate
Once incorporated, the company is capable, under its registered name, of:
| Power | What it means |
|---|---|
| (a) Exercising all functions of an incorporated company | Carry on the lawful objects laid down in the MOA |
| (b) Having perpetual succession | The company's existence is unaffected by death, insolvency, or change of members; "members may come and go, but the company goes on forever" |
| (c) Power to acquire, hold and dispose of property | Both movable and immovable, and both tangible and intangible (e.g., land, machinery, patents, trademarks, goodwill) |
| (d) To contract and to sue and be sued | The company contracts in its own name; it can sue others and be sued by others — not its members |
## Visual Summary
```
Subscribers + Future Members
│
Registration (COI granted)
│
BODY CORPORATE
(by name in memorandum)
│
┌──────────┬──────────┬──────────┬──────────┐
Functions Acquire/ Contract Perpetual
of company hold/ Sue & be Succession
dispose sued
property
```
## Why This Matters
- It is the statutory basis of the Salomon principle in India — separate legal personality.
- It establishes that the company, not its shareholders, owns its property and bears its liabilities.
- It confirms perpetual succession, central to long-term business continuity.