A company is a legal entity formed by one or more individuals or groups to conduct business or other activities with a common purpose, often to generate profit. It is recognized by law as a separate "artificial person" distinct from its owners or members, meaning it can enter contracts, own property, sue or be sued independently of the people involved

. Key characteristics of a company include:

• Separate Legal Entity: The company has its own legal identity, separate from its shareholders or members, protecting their personal assets from company liabilities

• Limited Liability: Shareholders' financial responsibility is limited to the unpaid amount on their shares, shielding personal assets from company debts

• Perpetual Succession: The company continues to exist regardless of changes in ownership, such as death or insolvency of members

• Management Structure: Companies are usually managed by a board of directors elected by shareholders, ensuring professional governance

• Transferability of Shares: In public companies, shares can be freely transferred, providing liquidity; private companies may restrict this

Companies can take various forms, including sole proprietorships, partnerships, limited liability companies, and corporations, each with different legal and financial structures

. They may be organized for profit or as nonprofit entities and operate in many sectors such as business, finance, education, or voluntary associations

. In summary, a company is a legally recognized organization created to pursue specific objectives, typically commercial, with a structure that provides legal protection and continuity beyond its individual members