Company
This query is : Resolved
08 December 2011
what is difference between company and body corporate.? plz explain in simple language.
08 December 2011
Body corporate is defined u/s 2(7) of the Companies Act, 1956 whereas company is defined u/s 3 of the Companies Act, 1956.
Body Corporate is a wider concept than company. According to Section 2(7)---
"Body corporate" or "corporation" includes a company incorporated outside India but doesnot include-
a. a corporation sole
b. a co-operative societyregistered under any law relating to co-operative societies
c. any other body corporate (not being a company company as defined in this Act), which the Central Govt. may, by a notification in the official gazette, specify in this behalf.
Now, the concept of Corporation Sole is not defined anywhere in the Act. But concisely, apart from those excluded specifically, a body corporate means any entity that has its separate legal existence apart from the persons forming it. It enjoys a completely different legal status apart from its members. So, a body corporate shall include: a company, a foreign company, a corporation, a statutory company, a statutory body, an LLP, etc. and such bodies that have separate legal existence.
Body Corporate is a wider concept than company. According to Section 2(7)---
"Body corporate" or "corporation" includes a company incorporated outside India but doesnot include-
a. a corporation sole
b. a co-operative societyregistered under any law relating to co-operative societies
c. any other body corporate (not being a company company as defined in this Act), which the Central Govt. may, by a notification in the official gazette, specify in this behalf.
Now, the concept of Corporation Sole is not defined anywhere in the Act. But concisely, apart from those excluded specifically, a body corporate means any entity that has its separate legal existence apart from the persons forming it. It enjoys a completely different legal status apart from its members. So, a body corporate shall include: a company, a foreign company, a corporation, a statutory company, a statutory body, an LLP, etc. and such bodies that have separate legal existence.
CA Ayush Agarwal
(Expert)
08 December 2011
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