{"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 – 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 – as such, it is important for every entrepreneur, professional, investor, etc, to have some understanding of this definition because a company’s legal nature governs ownership, liability, and governance.<\/p>\n

Legal Definition of Company<\/h2>\n

According to the Act –<\/p>\n

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

“Company means a company incorporated under this Act or under any previous company law.” <\/em><\/p>\n

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

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  1. A company must be incorporated – 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

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    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