A company can be understood as a form of business organization, which is an association of

persons, set up with an aim of undertaking business. It possesses a legal status distinct from its
members and governed by the Companies Act, 2013. It is an artificial person, having perpetual
succession and a common seal. It is commonly confused with the corporation, which is
nothing but a body corporate, registered within or outside the nation.

Company Vs Corporation

BASIS FOR
COMPANY CORPORATION
COMPARISON

Meaning A company which is The company which is

created and registered formed and registered in or
under the Indian outside India is known as a
Companies Act, 2013 is Corporation.
known as a Company.

Defined in section Section 2 (20) of Indian Section 2 (11) of Indian

Companies Act, 2013 Companies Act, 2013

Incorporated In India In and Outside India

Minimum As per the rules 5 crores

Authorized Capital

Scope Comparatively less Wide

Definition of Corporation

The term Corporation as defined in section 2 (11) of the Indian Companies Act, 2013 as a body
corporate, which is incorporated inside or outside the country, but excludes co-operative society,
corporation sole and any corporation which is formed by the notification in the Official Gazette
by the Central Government.

A corporation is a business organization having a separate legal entity, i.e. its identity is distinct
from its owners. It can sue or be sued in its name, with limited liability i.e. the liability of the
members is limited up to amount unpaid on shares held by them, having authorized capital of at
least five crores, and continued existence. Corporate Tax is levied on the income of the
corporation under the Income Tax Act, 1961.
Definition of Company

The term Company is defined in section 2 (20) of the Indian Companies Act, 2013 as a company
formed and registered under this Act or any other previous acts. A company is a voluntary
association of two or more than two persons joined for a common objective, treated as a distinct
legal personality and perpetual succession.

The company is considered as an artificial person having a common seal and registered head
office. As similar to a Corporation, the company has a right to sue or be sued in its own name.

The company can be of the following types:

 A company limited by shares

 Limited Liability Company (LLC)
 A company limited by guarantee.
 A company limited by both share and guarantee.
 Unlimited Company.

Key Differences Between Corporation and Company

The points given below are important, so far as the difference between corporation and
company is concerned:

The word Corporation is defined in section 2 (11) of the Companies Act while the term
Company is defined in section 2 (20) of the Companies Act.

The corporation came into existence if it is incorporated in or outside India whereas a

company came into existence when it is incorporated under the Indian Companies Act,
2013.

The Corporation should have a minimum authorized capital of Rs. 5,00,00,000.

Conversely, the Company should have a minimum authorized capital of Rs 1,00,000 in
the case of private company and Rs. 5,00,000 in the case of public company.

The Corporation is a larger term as compared to the Company.

Similarities

 Separate Legal Entity

 Perpetual Succession
 Right to sue and be sued
 Limited Liability
 Artificial Legal Person

Conclusion

The difference between Company and Corporation is subtle but still the scope of the word
Corporation is larger than the Company. Corporate Tax is levied on both the entities as per the
Income Tax Act, 1961. Hence, we can say that the terms cannot be used synonymously.