The Companies Act has many safeguards for your protection, and all limited companies are now formed in accordance with its provisions. By law a limited company is a separate legal concern quite distinct from its shareholders and directors. The director and the company therefore, have quite separate rights and completely separate existences.
 
A business name or partnership is (by law) an association of the partners and has no separate existence from them. As we shall see later, this can have a very fundamental bearing on the rights and duties of the persons involved in a business venture.
 
A limited company can help you in the instance of business failure and also in the instance of business success by reduction of tax.