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aman

aman (Querist)

08 December 2011 what is difference between company and body corporate.? plz explain in simple language.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

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.