{"id":41894,"date":"2025-09-03T14:42:27","date_gmt":"2025-09-03T09:12:27","guid":{"rendered":"https:\/\/www.kanakkupillai.com\/learn\/?p=41894"},"modified":"2025-09-03T14:42:27","modified_gmt":"2025-09-03T09:12:27","slug":"definition-of-company-in-company-law","status":"publish","type":"post","link":"https:\/\/www.kanakkupillai.com\/learn\/definition-of-company-in-company-law\/","title":{"rendered":"Definition of Company in Company Law"},"content":{"rendered":"

The concept of a company is pivotal in corporate law. While businesses can be formed through sole ownership, partnerships, or LLP<\/a>s, the company concept relates to limited liability, a separate legal persona, and an existence beyond the lives of its members. The Companies Act, 2013, in India, is the statute (primary legislation) defining and regulating companies in India.<\/p>\n

This blog discusses the definition of a company in company law, the features and types of companies, and why this legal form is critical to modern economic transactions.<\/p>\n

Introduction<\/h2>\n

When you hear the word company, you might immediately think of large corporations like Reliance, Tata, or Infosys but, legally, a company is much more than just a brand name or an organization \u2013 it is a legal entity separate in law.<\/p>\n

The Companies Act, 2013 (which replaced the Companies Act, 1956) defines what a company is, how to create one, and the rules it must follow \u2013 as such, it is important for every entrepreneur, professional, investor, etc, to have some understanding of this definition because a company\u2019s legal nature governs ownership, liability, and governance.<\/p>\n

Legal Definition of Company<\/h2>\n

According to the Act \u2013<\/p>\n

Section 2(20) of the Companies Act, 2013 defines a company \u2013<\/p>\n

\u201cCompany means a company incorporated under this Act or under any previous company law.\u201d <\/em><\/p>\n

Following the above definition, we can conclude that \u2013<\/p>\n

    \n
  1. A company must be incorporated \u2013 registered with the Registrar of Companies<\/a> (ROC)<\/li>\n
  2. A company can be incorporated under either the Companies Act, 2013 or previous acts (for example, the Companies Act, 1956).<\/li>\n<\/ol>\n

    In sum, although organizations exist naturally, a company does not exist until it is registered.<\/p>\n

    Key Features of a Company<\/h2>\n

    The statutory definition may seem simple, but company law and judicial precedents expand on its essential characteristics.<\/p>\n

      \n
    1. Separate Legal Entity<\/strong><\/li>\n<\/ol>\n

      A company is distinct from its members. It can own property, enter into contracts, sue or be sued in its own name.<\/p>\n