A company is a legal entity formed by a group of individuals to conduct business, operate as a separate and distinct legal person, and achieve specific objectives, such as making a profit. Key features include being a separate legal entity from its owners, which offers limited liability, and having perpetual succession, meaning it continues to exist even if its owners change. Companies can take various forms, such as a sole proprietorship, partnership, or corporation, and have rights and responsibilities similar to a person, like entering contracts, owning property, and being able to sue or be sued. 

Key characteristics of a company

• Separate legal entity: A company is treated as an independent "person" under the law, separate from its owners, shareholders, and directors.
• Limited liability: The personal assets of the owners are protected from business debts; their liability is typically limited to the amount they invested.

Common forms of companies

• Sole proprietorship: A business owned and run by one individual, where the owner and business are legally the same.
• Partnership: A business owned and run by two or more individuals, who share in the profits and liabilities.
• Corporation: A more complex business structure, often with many shareholders, that has limited liability and a more formal management structure.
• Nonprofit organization: An entity formed for a social, charitable, or public benefit rather than to make a profit.