A company is an association of two or more persons in furtherance of a common business objective. A company is a “Separate Legal Entity” having its own identity distinct from its members. As a legal entity, a company can own a property in its own name, can sue and be sued in its own name and also enjoys perpetual succession, among others. However, since a Company, unlike a human being, is an artificial person, it can only act through its agents, namely, the Board of Directors.
The process of legally declaring a corporate entity as a separate legal entity distinct from its members is known as “Incorporation of a Company”. An association of persons in order to initiate its business as a company has to get a certificate of incorporation from the Registrar of Companies (ROC).