Company: An English term for a business association established by owners or shareholder by contributing funds.
Corporation: An American term for company, with substantially the same meaning.
The terms ‘company’ and ‘corporation’ are mostly used interchangeably – incorrectly.
A corporation is a business organization having separate legal entity, which means that is distinct from its owners. It can sue or be sued in its own name, with limited liability (the liability of the members is limited up to the amount unpaid on the shares held by them).
A company on the other hand is a voluntary association of two or more than two persons joined together for a common objective and treated as a distinct legal personality. The company is considered as an artificial person. Similarly to a corporation, the company has a right to sue or be sued in its own name.
So in conclusion, the difference between a company and a corporation is subtle but still the scope of the word Corporation is larger than the Company.
