|Company A companyis a legally recognized organization that makes, buys and sells goods or provides services for a profit.|
Once a company is registered under the Companies Act it must comply with the act and it becomes a separate legal entity.This means that it has its own legal existence, separate from that of the owners. A new company is like an empty box. There is nothing in it at first and anything that goes into it must go out again at some time. A company is not the owner - it is a separate entity. If the owners or shareholders put money into the company the company has a legal obligation to pay it back.