The definition of a company varies from country to country and may vary according to the goals and objectives of each company. This difference leads to the diversity of types of companies and their specifications. Is there a standard definition of what it means to be a company? What are the types and strengths of the company?
A comprehensive and modern definition of what company means is as follows: A company is a legal form of partnership between business organizations or individuals for the purpose of conducting business activities. A business entity created by a legal person to act as a human-made legal entity with the purpose of undertaking or carrying out a commercial or industrial enterprise.
- Company Features
In order to form a corporation, it must be a corporation registered under the Companies Act. In addition, it must meet the registration requirements for documentation, members, directors, and capital in order to be considered a legitimate association.
- man-made legal person
From a legal point of view, a company is a legal person who has the right to acquire and dispose of any property. It also has the right to enter into contracts in its own name and to sue and sue others.
- independent legal entity
A feature of the company is that it is legally independent of entities other than members and officers. Since it is only liable to pay debts and is the only process in which a lawsuit is brought, members cannot be sued based on the company’s actions. It is also not responsible for paying members’ debts.
- stable existence
A company is different from any unregistered business entity, it is a stable and stable business system. Its existence does not depend on the lives of its directors, members or shareholders. The members and the chairman of the board may change, but the company will continue to exist.
- plain seal
The company is characterized by the signature of the legal person, which is a common seal engraved with the name of the company used as the place of the legal person’s signature. Every document bearing this seal is legally binding on the company.
- Limited commitment
The company can be incorporated by shares or guarantee. When the company is a company limited by shares, the obligations of its members are limited to the unpaid value of their shares. When tied up in a guarantee, members’ obligations are limited to the amount they agree to contribute in the event of the company’s bankruptcy or failure.
Type of Company
There are several types of corporations based on different considerations, including consideration of members, type of obligations, and method of incorporation.
- Member considerations
One man company
This type of company is established by a single person with the aim of encouraging young entrepreneurs.
- Private company
A company registered by one or more persons under the Companies Act and cannot be owned by the public. The number of its members and the right to transfer shares is restricted. It is also prohibited to invite the public to subscribe to the company’s shares or bonds.
- Listed companies
Allow the public to participate in the ownership of these companies. That is, anyone can subscribe to its shares. The number of members and the possibility of transferring company shares is unlimited.
- Company limited by shares
It is a company whose members’ obligations are limited to the unpaid value of the shares previously mentioned in the company’s characteristics.
- Company limited by guarantee
This means that in the event of a company going bankrupt or closing down, the obligations of its members are limited to the type of company that has agreed to pay the amount.
- unlimited company
The obligation of the members of the company is unlimited and ends when the member decides to cancel his membership and leave the company.
- How to install
King owned company
This type of company is created with the permission of the king or by royal decree. As examples of such companies we have mentioned the BBC, the East India Company and the Bank of England.
- legitimate company
It is called legal because it is established by the central legislature or special laws enacted by the legislature. It is designed to undertake projects of national importance.
- Register or register a company
Created or incorporated under the Companies Act passed by the government. These companies are incorporated after they are registered in accordance with the relevant legal procedures and have obtained the Certificate of Incorporation accepted by the Registrar of Companies.