Company and Partnership Law

Company and partnership law was created to deal with companies. A company is defined (by law) as a legal entity which is formed under a separate legal identity to its members. Companies are usually incorporated in order to carry out commercial business. For a partnership to officially exist, there must be at least two partners.

Companies are the most common form of business vehicle in the majority of countries, because its members face a limited liability for any debts, and it is also easier to separate it as an independent entity for tax purposes. A company is usually formed for profits, but there are some which are formed for public investment, or for charity/social purposes. There are many other various uses for a company, with such examples being negotiating finances or having a role in tax structuring.

Company and partnership law can classify companies in multiple different ways. For example, companies can be unlimited, limited by shares, limited by guarantee or limited by guarantee with a share capital. These options relate to the liability company members have, and also the presence of shares. There are also other company forms, such as statutory companies and charter companies, which are more obscure.

In legal terms, companies are different to guilds, partnerships, sole proprietorships, trusts and unincorporated associations of people.