Company Legal Meaning and Definition

Here is a simplified definition of the legal term Company.

Company (noun)

A company is a type of business entity that is owned and managed by a collection of individuals, known as shareholders. These individuals join forces with the intention of conducting trade, making goods, or offering services to earn profits. There are several kinds of companies such as partnerships, corporations, and joint stock companies. Each must comply with various legal formalities based on local, state, or federal laws. These include obtaining licenses and completing official registration.