Company Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Company, written in plain English, along with examples of how it is used.
What is Company?
It is a legal association between persons for trading or manufacturing of goods with the intention oe earning profits.It can be in the form of partnership,corporation, joint stock company. They need to fullfill ceratin legal formalities according to the state, federal or local laws like obtaining a licence, getting the company registered etc.
History and Meaning of Company
A company is a legal entity formed by individuals, shareholders or partners, who contribute capital and resources to conduct business for the purpose of earning profits. The structure and type of company vary upon legal, regulatory, and tax factors within the jurisdiction in which it operates. Companies are recognized as separate legal entities, meaning that the company is responsible for its own finances and activities.
Examples of Company
- Apple Inc. is a multinational technology company that focuses on key product lines such as iPhone, iPad, and macOS. It is a registered corporation in California, USA.
- Procter & Gamble Co is an American multinational consumer goods corporation that specializes in manufacturing and distributing a wide range of consumer goods. They have operations in more than 80 countries worldwide.
- Samsung Electronics is a South Korean multinational electronics company that manufactures computer components, consumer electronics, and mobile communications devices.
- A partnership firm between two lawyers with the intention of earning profits by practicing law.
- An online retailer like Amazon that sells products online with the intention of earning a profit by taking a commission on each sale.
Legal Terms Similar to Company
- Corporation: A type of company that was established via legal charter and is recognized as a separate legal entity from its owners.
- Partnership: A type of company in which two or more individuals carry on business activities together for the purpose of earning profits.
- LLC: It stands for a limited liability company. It is a type of business structure in which typically the company's owners or shareholders are referred to as members. The company being a separate legal entity is also responsible for its own finances and activities.