Many new entrepreneurs think of "my company" and "me" as exactly the same thing. Legally, they are not. This separation can be important when dealing with contracts, debts, assets, employees and business disputes, and it explains why a company can continue operating even when its shareholders change.
Source: Companies Act 71 of 2008
Frequently Asked Questions
Does a company have its own legal identity?
Yes — a registered company is a juristic person separate from its shareholders.
Does this mean the owners can never be personally liable?
No — there are circumstances in which directors or other individuals can incur personal liability.
Why is separate legal personality useful?
It allows the business to own assets, enter contracts and incur obligations in its own name rather than automatically making every business obligation a personal obligation of its owners.