What is a company?

Company is an institution created to conduct business. A company in common parlance means a group of persons associated together for the attainment of a common end, social or economic. It is a voluntary association of persons.

Some also defines it as an association of many persons who contribute money or money's worth to a common stock, and employ it in some common trade or business and share the profit or loss arising there from.

What is important about a company?

Two important characteristics of a company is separate legal entity and limited liability of it's members.

• Companies can be classified as Incorporated and Unincorporated.
  
• Incorporated companies can be further classified as Statutory and Registered Companies
  
• Registered Companies are further classified as Limited and Unlimited Companies
  
• Limited Companies can be classified as Limited by Shares and Limited by Guarantee
  
• Public or private also identifies all registered companies.