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{{shortShort description|Association or collection of individuals, whether natural persons, juridic persons, or a mixture of both}}
{{Other uses}}
{{Redirect|And co.|the company with this name|And CoFirm}}
{{also|Corporation}}
{{More footnotes|date =June 2016}}
{{More inline citations needed|date=July 2023}}
{{Use mdy dates|date=March 2020}}
{{Capitalism sidebar}}
[[File:Münster, LVM, Bürogebäude -- 2013 -- 5149-51.jpg|thumb|A modern corporate office building in [[Münster]], North Rhine-Westphalia, Germany]]
[[File:Nokia office building in Hervanta Tampere 1.jpg|thumb|An office building of [[Nokia Corporation]] in [[Hervanta]], Tampere, Finland]]
 
A '''company''', abbreviated as '''co.''', is a [[Legal personality|legal entity]] made up ofrepresenting an [[Voluntary association|association]] of legal people, be theywhether [[Natural person|natural]], [[LegalJuridical personalityperson|legaljuridical]], or a mixture of both, for carrying onwith a [[Commerce|commercial]]specific or [[industry|industrial]] [[wikt:enterprise|enterprise]]objective. Company members share a common purpose, and unite to focus their various [[Aptitude|talents]] and organize their collectively available [[skill]]s or [[resource]]s to achieve specific, declared [[goal]]sgoals. Companies take various forms, such as:
* [[voluntary association]]s, which may include [[nonprofit organization]]s
* [[Companies law|business entities]] with an aim of gaining a [[Profit (economics)|profit]]
* [[Financial capital|financial entities]] and [[bank]]s
 
Over time, companies have evolved to have the following features: "separate legal personality, limited liability, transferable shares, investor ownership, and a managerial hierarchy".<ref name=":0">{{Cite journal |last=Turner |first=John D. |date=2024-01-30 |title=Three centuries of corporate governance in the United Kingdom |journal=The Economic History Review |language=en |doi=10.1111/ehr.13326 |issn=0013-0117|doi-access=free }}</ref> The company, as an entity, was created by the [[State (polity)|state]] which granted the privilege of incorporation.<ref name=":0" />
A company or association of persons can be created at [[law]] as a legal person so that the company in itself can accept [[limited liability]] for civil responsibility and taxation incurred as members perform (or fail to discharge) their [[duty]] within the [[Common knowledge|publicly declared]] ''[[Incorporation (business)|"birth certificate"]]'' or [[Publishing|published]] [[policy]].
 
Companies take various forms, such as:
Companies as legal persons may associate and register themselves collectively as other companies – often known as a [[corporate group]]. When a company closes, it may need a ''[[Liquidation|"death certificate"]]'' to avoid further legal obligations.
* [[voluntary association]]s, which may include [[nonprofit organization]]s
* [[List of legal entity types by country|business entities]], whose aim is to generate [[sales]], [[revenue]], and [[For-profit|profit]]
* financial entities and [[bank]]s
* programs or [[Educational institution|educational institutions]]
 
A company can be created as a legal person so that the company itself has [[limited liability]] as members perform or fail to discharge their duties according to the publicly declared [[Incorporation (business)|incorporation]] published policy. When a company closes, it may need to be [[Liquidation|liquidated]] to avoid further legal obligations. Companies may associate and collectively register themselves as new companies; the resulting entities are often known as [[corporate group]]s.
 
==Meanings and definitions==
A company can be defined as an "artificial person", invisible, intangible, created by or under law,<ref>
{{Globalize|section|Western culture|date=June 2019}}
Compare a definition of a corporation: ''"Perhaps the best definition of a corporation was given by Chief Justice John Marshall in a famous Supreme Court decision in 1819. A corporation, he said, 'is an artificial person, invisible, intangible, and existing only in contemplation of the law.' In other words, a '''corporation''' [...] is an artificial person, created by law, with most of the legal rights of a real person."''
One can define a company as an "artificial person", invisible, intangible, created by or under law,<ref>
Compare a definition of a corporation:
{{cite book
| last1 = Pride
Line 24 ⟶ 31:
| last3 = Kapoor
| first3 = Jack R.
| orig-year = 1985
| chapter = 4: Choosing a form of business ownership
| title = Business
Line 36 ⟶ 43:
| isbn = 9780324829556
| access-date = 20 Apr 2019
}}</ref> with a discrete [[legal capacity]] (or "personality"), [[perpetual succession]], and a [[Company seal|common seal]]. Except for some senior positions, companies remain unaffected by the death, insanity, or [[insolvency]] of an individual member.
| quote = Perhaps the best definition of a corporation was given by Chief Justice John Marshall in a famous Supreme Court decision in 1819. A corporation, he said, 'is an artificial person, invisible, intangible, and existing only in contemplation of the law.' In other words, a '''corporation''' [...] is an artificial person, created by law, with most of the legal rights of a real person.
}}
</ref>
with a discrete [[legal personality]], [[perpetual succession]], and a [[Company seal|common seal]].{{cn|date= October 2013}} Companies remain unaffected by the death, insanity, or [[insolvency]] of an individual member.
 
===Etymology===
The English word, "''company''", has its origins in the [[Old French]] term ''{{Lang|fro|compagnie''}} (first recorded in 1150), meaning a "society, friendship, intimacy; body of soldiers",<ref>12th century: {{OEtymD|company}}</ref> which came from the [[Late Latin]] word ''{{Lang|la|companio''}} ("one who eats bread with you"), first attested in the '' [[Salic law|Lex Salica]]'' ({{circa}} 500AD CE500) as a [[calque]] of the [[Germanic languages|Germanic]] expression ''{{Lang|frk|gahlaibo''}} (literally, "with bread"), related to [[Old High German]] ''{{Lang|goh|galeipo''}} ("companion") and to [[Gothic language|Gothic]] ''{{Lang|got|gahlaiba''}} ("messmate").
 
=== Semantics and usage ===
By 1303, the word company referred to [[Guild|trade guilds]].<ref>
Compare:
{{OEtymD|company}} - '[...] the word having been used in reference to trade guilds from late 14c.'
</ref> The usage of the term ''company'' to mean "business association" was first recorded in 1553,<ref>
</ref>
Usage of the term ''company'' to mean "business association" was first recorded in 1553,<ref>
Compare:
{{OEtymD|company}} - 'From late 14c. as "a number of persons united to perform or carry out anything jointly," which developed a commercial sense of "business association" by 1550s, the word having been used in reference to trade guilds from late 14c.'
Line 58 ⟶ 61:
</ref><ref>
Compare:
{{OEtymD|co.}} - 'by 1670s1670's as an abbreviation of company in the business sense, indicating the partners in the firm whose names do not appear in its name. Hence and co. to indicate "the rest" of any group (1757)'.
</ref>
 
== Companies around the world ==
{{Globalize|section|Western culture|date=June 2019}}
 
===China===
According to the [[Company Law of the People's Republic of China]], companies include the limited liability company and joint-stock limited company which founded in the [[Mainland China|mainland]] China.
 
===United Kingdom===
{{See also|List of companies of the United Kingdom}}
In [[English law]] and in legal jurisdictions based upon it, a company is a [[Legal personality|body corporate]] or corporation company registered under the [[United Kingdom company law|Companies Acts]] or under similar legislation.<ref name = uk>[{{Cite web|url= http://www.legislation.gov.uk/ukpga/2006/46/section/1/data.htm|title= Companies Act 2006|website= www.legislation.gov.uk|access-date= March 15, Section2020|archive-url= https://web.archive.org/web/20150410122903/http://www.legislation.gov.uk/ukpga/2006/46/section/1]/data.htm|archive-date=April 10, 2015|url-status= live}}</ref> Common forms include:
* [[Private company limited by guarantee|Private companies limited by guarantee]]
</ref>
* [[Community interest company]]
Common forms include:
* [[Charitable incorporated organisation]]
* [[Private company limited by guarantee|private companies limited by guarantee]]
* [[Private company limited by shares|Private companies limited by shares]] - the most common form of company
* companies without share capital (often [[Nonprofit organization|non-profit]] entities)
* [[PrivatePublic limited company|Public limited bycompanies]] shares|private- companies, limitedusually bylarge, which are permitted to (but do not have to) offer their shares]] -to the mostpublic, commonfor formexample ofon companya [[stock exchange]]
* [[Public limited company|public limited companies]] - companies, usually large, which are permitted to (but do not have to) offer their shares to the public, for example on a [[stock exchange]]
 
In the United Kingdom, a [[partnership]] is not legally a company, but may sometimes be referred to{{by whom?|date= October 2015}} (informally) as a "company". It may be referred to as a [[Business|"firm"]].
 
===United States===
{{See also|List of companies of the United States by state}}
In the [[United States]], a company may be a "[[corporation]], [[partnership]], association, [[joint-stock company]], [[Investment trust|trust]], [[Mutual fund|fund]], or organized group of [[person]]s, whether incorporated or not, and (in an official capacity) any receiver, trustee in bankruptcy, or similar official, or liquidating [[Law of agency|agent]], for any of the foregoing".<ref>
 
{{cite book
In the [[United States]], a company is not necessarily a corporation. For example, a company may be a "[[corporation]], [[partnership]], association, [[joint-stock company]], [[Investment trust|trust]], [[Mutual fund|fund]], or organized group of [[person]]s, whether incorporated or not, and (in an official capacity) any receiver, trustee in bankruptcy, or similar official, or liquidating [[Law of agency|agent]], for any of the foregoing".<ref>{{cite book | year = 1891 | chapter = company | editor1-last = Garner | editor1-first = Bryan A. | editor1-link = Bryan A. Garner | title = Black's Law Dictionary | url = https://books.google.com/books?id=sgNfDwAAQBAJ | series = Black's Law, 9th Edition | volume = 1 | edition = 9 | location = St. Paul, Minnesota | publisher = West Publishing, Inc | publication-date = 2009 | page = 318 | isbn = 9780314199492 | access-date = 20 Apr 2019 | quote = "2. A corporation, partnership, association, joint-stock company, trust, fund, or organized group of persons, whether incorporated or not, and (in an official capacity) any receiver, trustee in bankruptcy, or similar official, or liquidating [[Law of agency|agent]], for any of the foregoing. Investment Company Act 2(a)(8)(15 USCA 80a-2(a)(8))." }}{{Dead link|date=December 2023 |bot=InternetArchiveBot |fix-attempted=yes }}</ref><ref name="Black's">[[Black's Law Dictionary]]. Second Pocket Edition. Bryan A. Garner, editor. West. 2001.</ref>
| orig-year = 1891
| chapter = company
| editor1-last = Garner
| editor1-first = Bryan A.
| editor1-link = Bryan A. Garner
| title = Black's Law Dictionary
| url = https://books.google.com/books?id=sgNfDwAAQBAJ
| series = Black's Law, 9th Edition
| volume = 1
| edition = 9
| location = St. Paul, Minnesota
| publisher = West Publishing, Inc
| publication-date = 2009
| page = 318
| isbn = 9780314199492
| access-date = 20 Apr 2019
| quote = "2. A corporation, partnership, association, joint-stock company, trust, fund, or organized group of persons, whether incorporated or not, and (in an official capacity) any receiver, trustee in bankruptcy, or similar official, or liquidating [[Law of agency|agent]], for any of the foregoing. Investment Company Act 2(a)(8)(15 USCA 80a-2(a)(8))."
}}
</ref><ref name="Black's">Black's Law and lee Dictionary. Second Pocket Edition. Bryan A. Garner, editor. West. 2001.</ref> In the US, a company is not necessarily a corporation.<ref>{{cite web|url= http://legal-dictionary.thefreedictionary.com/company|title= Company legal definition of company|work= TheFreeDictionary.com | quote = company [:] any formal business entity for profit which may be a corporation, a partnership, association or individual proprietorship. Often people think the term "company" means the business is incorporated, but that is not true. In fact, a corporation usually must use some term in its name such as "corporation," "incorporated," "corp." or "inc." to show it is a corporation.}}
</ref>
 
==Types==
{{for|a country-by-country listing|types of business entity}}
{{see also|Business#Forms}}
 
* '''A [[Private company limited by guarantee|company limited by guarantee]] (CLG):''' Commonly used where companies are formed for non-commercial purposes, such as clubs or charities. The members guarantee the payment of certain (usually nominal) amounts if the company goes into [[liquidation|insolvent liquidation]], but otherwise, they have no economic rights in relation to the company. This type of company is common in [[England]]. A company limited by guarantee may be with or without having [[share capital]].
See also [[Business#Forms|types of business]]
* '''A [[Private company limited by guaranteeshares|company limited by guaranteeshares]]:'''. The Commonlymost usedcommon whereform companiesof arethe formedcompany used for non-commercialbusiness ventures. purposesSpecifically, sucha aslimited clubscompany oris charities.a "company The membersin guaranteewhich the paymentliability of certaineach (usuallyshareholder nominal)is amountslimited ifto the companyamount goesindividually intoinvested" [[liquidation|insolventwith liquidation]],corporations butbeing otherwise,"the theymost havecommon noexample economicof rightsa in relation to thelimited company".<ref name="Black's"/> This type of company is common in England and many [[EnglandEnglish-speaking world|English-speaking countries]]. A company limited by guaranteeshares may be witha or[[public withoutcompany|publicly havingtraded company]] or a [[shareprivately capitalheld company]].
* '''A [[Private company limited by shares|companyguarantee limitedwith bya share shares]]capital:'''. TheA mosthybrid commonentity, formusually ofused where the company usedis formed for businessnon-commercial ventures. Specificallypurposes, a limited company is a "company in whichbut the liabilityactivities of each shareholder is limited to the amountcompany individuallyare invested"partly withfunded corporationsby beinginvestors "thewho most common example ofexpect a limited companyreturn."<ref name="Black's"/> This type of company ismay commonno longer be formed in [[England]]the andUK, manyalthough English-speakingprovisions countries.still Aexist companyin limitedlaw byfor sharesthem mayto beexist.<ref aname="uk" />
* '''A [[limited liability company]]''': "A company—statutorily authorized in certain states—that is characterized by limited liability, management by members or managers, and limitations on ownership transfer", i.e., L.L.C.<ref name="Black's"/> LLC structure has been called "hybrid" in that it "combines the characteristics of a corporation and of a partnership or [[sole proprietorship]]". Like a corporation, it has limited liability for members of the company, and like a partnership it has "flow-through taxation to the members" and must be "dissolved upon the death or bankruptcy of a member".<ref>{{cite web|url=http://www.investopedia.com/terms/l/llc.asp#ixzz2CEzgE239|title=Limited Liability Company (LLC) Definition - Investopedia|author=root|work=Investopedia|access-date=November 14, 2012|archive-url=https://web.archive.org/web/20121127013955/http://www.investopedia.com/terms/l/llc.asp#ixzz2CEzgE239|archive-date=November 27, 2012|url-status=live}}</ref>
** [[public company|publicly traded company]] or a
* '''An [[unlimited company]] with or without a share capital''': A hybrid entity, a company where the liability of members or shareholders for the debts (if any) of the company are not limited. In this case, the doctrine of a veil of incorporation does not apply.{{cn|date=February 2023}}
** [[privately held company]].
* '''A company limited by guarantee with a share capital'''. A hybrid entity, usually used where the company is formed for non-commercial purposes, but the activities of the company are partly funded by investors who expect a return. This type of company may no longer be formed in the UK, although provisions still exist in law for them to exist.<ref>Companies Act 2006</ref>
* '''A [[limited liability company]]'''. "A company—statutorily authorized in certain states—that is characterized by limited liability, management by members or managers, and limitations on ownership transfer", i.e., L.L.C.<ref name="Black's"/> LLC structure has been called "hybrid" in that it "combines the characteristics of a corporation and of a partnership or sole proprietorship". Like a corporation, it has limited liability for members of the company, and like a partnership it has "flow-through taxation to the members" and must be "dissolved upon the death or bankruptcy of a member".<ref>{{cite web|url=http://www.investopedia.com/terms/l/llc.asp#ixzz2CEzgE239|title=Limited Liability Company (LLC) Definition - Investopedia|author=root|work=Investopedia}}</ref>
* '''An [[unlimited company]] with or without a share capital'''. A hybrid entity, a company where the liability of members or shareholders for the debts (if any) of the company are not limited. In this case doctrine of a veil of incorporation does not apply.
 
''Less common types of companies are:''
* '''Companies formed by letters patent'''. Most corporations by letters patent are ''[[corporation sole|corporations sole]]'' and not companies as the term is commonly understood today.
* '''[[Royal charter|Charter corporations]]'''. Before the passing of modern companies legislation, these were the only types of companies.{{dubious|date=July 2018}}<!-- even in the ancient Roman Republic? see [[Corporation#History]] --> Now they are relatively rare, except for very old companies that still survive (of which there are still many, particularly many British banks), or modern societies that fulfill a quasi-regulatory function (for example, the [[Bank of England]] is a corporation formed by a modern charter).
* '''Statutory companies'''. Relatively rare today, certain companies have been formed by a private statute passed in the relevant jurisdiction.
 
* '''Companies formed by letters patent''': Most corporations by letters patent are [[corporation sole|corporations sole]] and not companies as the term is commonly understood today.
Note that "Ltd" after the company's name signifies a limited company, and "PLC" ([[public limited company]]) indicates that its shares are widely held.<ref>{{Cite web|url=https://www.bbc.com/bitesize/guides/z4br87h/revision/3|title=BBC Bitesize - GCSE Business - Forms of business ownership - Revision 3|website=BBC Bitesize|access-date=2018-08-31}}</ref>
* '''[[Royal charter|Royal charter corporations]]''': In middle-ages Europe, before the passing of modern companies legislation, these were the only types of companies.{{cn|date=February 2023}} Now they are relatively rare, except for very old companies that still survive (particularly many British banks), or modern societies that fulfill a quasi-regulatory function (for example, the [[Bank of England]] is a corporation formed by a modern charter).
* '''Statutory companies''': Relatively rare today, certain companies have been formed by a private statute passed in the relevant jurisdiction.
 
When "Ltd" is placed after the company's name, it signifies a limited company, and "PLC" ([[public limited company]]) indicates that its shares are widely held.<ref>{{Cite web|url=https://www.bbc.com/bitesize/guides/z4br87h/revision/3|title=BBC Bitesize - GCSE Business - Forms of business ownership - Revision 3|website=BBC Bitesize|access-date=2018-08-31|archive-url=https://web.archive.org/web/20180901050059/https://www.bbc.com/bitesize/guides/z4br87h/revision/3|archive-date=September 1, 2018|url-status=live}}</ref>
In the legal context, the owners of a company are normally referred to as the "members". In a company limited or unlimited by shares (formed or incorporated with a share capital), this will be the [[shareholder]]s. In a company limited by guarantee, this will be the guarantors. Some [[Offshore financial center|offshore jurisdictions]] have created special forms of [[offshore company]] in a bid to attract business for their jurisdictions. Examples include "[[segregated portfolio company|segregated portfolio companies]]" and restricted purpose companies.
 
In the legal context, the owners of a company are normally referred to as the "members". In a company limited or unlimited by shares (formed or incorporated with a share capital), this will be the [[shareholder]]s. In a [[Private company limited by guarantee|company limited by guarantee]], this will be the guarantors. Some [[Offshore financial center|offshore jurisdictions]] have created special forms of [[offshore company]] in a bid to attract business for their jurisdictions. Examples include [[segregated portfolio company|segregated portfolio companies]] and restricted purpose companies.
There are, however, many, many sub-categories of types of company that can be formed in various jurisdictions in the world.
 
However, there are many sub-categories of company types that can be formed in various jurisdictions in the world.
 
Companies are also sometimes distinguished for legal and regulatory purposes between '''[[public limited company|public companies]]''' and '''[[privately held company|private companies]]'''. Public companies are companies whose shares can be publicly traded, often (although not always) on a [[stock exchange]] which imposes [[Listing (finance)|listing requirements]]/[[Listing Rules]] as to the issued shares, the trading of shares and future issue of shares to help bolster the reputation of the exchange or particular market of an exchange. Private companies do not have publicly traded shares, and often contain restrictions on transfers of shares. In some jurisdictions, private companies have maximum numbers of shareholders.
 
A [[parent company]] is a company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors; the second company being deemed as a subsidiary of the parent company. The definition of a parent company differs by jurisdiction, with the definition normally being defined by way of laws dealing with companies in that jurisdiction.
 
==See also==
Line 130 ⟶ 118:
* [[List of largest employers]]
* [[Lists of companies]]
* [[Stewardship]]
* [[Types of business entity]]
 
Line 136 ⟶ 125:
 
==Further reading==
* Alan Dignam and John Lowry. ''Company Law''. Oxford: [[Oxford University Press]], 2020. {{ISBN|978-0-19-928936-3}}.
{{Wiktionary|company}}
* [[John Micklethwait]] and [[Adrian Wooldridge]], ''The Company: A Short History of a Revolutionary Idea''. New York: Modern Library, 2003.
{{wikiquote|Companies}}
* Dignam, A and Lowry, J. ''Company Law''. Oxford: [[Oxford University Press]], 2006. {{ISBN|978-0-19-928936-3}}.
* [[John Micklethwait]] and [[Adrian Wooldridge]], ''The Company: a Short History of a Revolutionary Idea''. New York: Modern Library, 2003.
* {{cite EB1911|wstitle=Company|volume=6|pages=795–803|short=1}}
 
==External links==
{{Wiktionary|Company}}
{{Wikiquote|Companies}}
{{Commons category|Companies}}
<!-- Please do not link to any employment services, free or otherwise. Link to informative sites *about* employment, instead. -->
* {{cite web |title=Labor and Employment |url=http://ucblibraries.colorado.edu/govpubs/us/labor.htm |work=Government Information Library |publisher=University of Colorado at Boulder |access-date=2009-08-05 |archive-url=https://web.archive.org/web/20090612060749/http://ucblibraries.colorado.edu/govpubs/us/labor.htm |archive-date=2009-06-12 |url-status=dead }}
* {{cite web |title=Get Information About a Company |url=https://www.gov.uk/get-information-about-a-company |publisher=Gov.UK }}
 
{{Authority control}}
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[[Category:Legal entities]]
[[Category:Companies| ]]
[[Category:Corporations]]
Retrieved from "https://en.wikipedia.org/wiki/Company"