Company law or the law of business association is that area of law which is concerned with companies and all kinds of business organizations. Partnerships and other associations, corporations which in some form are involved in charitable or economic activity are included in company law. The most prominent kind of company is a “juristic person”, usually referred to as a “corporation” which it has separate legal personality and invests in money into the business and have limited liability for any losses the company makes and is governed by corporate or company law. Those companies which are usually publicly listed on stock exchanges around the world are considered to be usually large corporate or companies. In order to carry on a business, even sole traders or single individuals may incorporate themselves and limit their liability. However, whatever the company type and stature, they depend on the specific laws of a particular country in which they are located or operate from.
The common law of England is the influencing factor for the law of business organizations, and the rules and regulations of a company law are originally derived from it. Though it has evolved significantly in the 20th century there are some common laws which all the countries follow today and the most commonly addressed forms are:
- * Limited company
- * Corporation
- * Limited liability partnership
- * Limited partnership
- * Unlimited company
- * Company limited by guarantee
- * Not-for-profit Corporation
- * Sole Proprietorship
- * Partnership
There are many countries that have forms of business unit unique to that country, although there might be equivalents elsewhere. Examples are the limited liability limited partnership (LLLP) and the limited liability company (LLC) in the United States. Cooperatives, credit unions, and publicly owned enterprises, are other forms of business that are covered by the company law.