What is Company Definition and Legal Meaning

The word company has no strictly technical or legal meaning. In terms of the Companies Act. A company means a company formed and registered under the company act. In common law, a company is a legal person or legal entity separate from and capable of surviving beyond the lives of its members. Like any juristic person, a company is legally an entity apart from its members capable of right and duties of its own and endowed with the potential of perpetual succession

But the company is not merely a legal institution it is rather a legal device for the attainment of any social or economic end and to a large extent publicly and socially responsible it is, therefore, a combined political social economic and legal institution thus the term has been variously described it is a means of co-operation in the conduct of an enterprise Corporate device is one form of associated enterprise. It is an intricate, centralized, economic administrative structure run by professional managers who hire capital from the investors.

The practical way a company means a company of a certain person

In a practical way a company means a company of certain person registered under the company Act Two or more persons who are desirous of carrying on joint business enterprises have the choice of either forming a company or a partnership. Partnership is a suitable device for small scale business which can be financed and managed by a small group of partners who take person interest and there is mutual trust and confidence among them. But  where the enterprise requires a rather greater mobilization of capital which the resources of a few persons cannot provide the formation of a company is the only choice Even for small scale business the choice of a company would be better as this is the only form of business organization which offer the privilege of limiting personal liability for business debts