An artificial person created by law who has common seal and perpetual entity. A company has following features the minimum members are 7 and no limit for maximum in case of public company. Minimum numbers are 2 and maximum 50 in case of a private company. The liability of members is limited up to the amount of capital contributed. The capital in company is larger as compared to the partnership.
The owner is not the part of management employees is higher to run the company. It is registered by a legal process. It has a common seal because it is an artificial person and cannot sign itself hats why a seal is used as a sign. It has a perpetual entity and a life of a company is long as compared to the partnership. If members die or left the company is not affected. The capital is divided into shares. The person who buys the share became the member of a company.
The company’s books of accounts are not kept secret. It has to list on stock exchange. It is compulsory to audit the company by external auditor once in a year. There are many kinds if shares in a company. The company starts its business after receiving the commencement certificate. It has a head office. The word limited or unlimited is written in the end of its name.
Company also hire internal auditor who is the employee of a company. The management hire on a fixed remuneration.
The company issue prospectus in which the past detail of company like history past profits are written in it.
The company can also open its branches. Sometimes its branches are outside the country known as foreign branch.
