Difference Between Corporation and Company

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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.

Generally, corporations used to mean big business houses, whose presence is all over the world. On the other hand, the company has a limited scope as it indicates the business entity which is present in the country in which it is registered. To understand the two terms clearly, read out the given article which incorporates the difference between company and corporation.

Comparison Chart

Basis for Comparison	Company	Corporation
Meaning	A company which is created and registered under the Indian Companies Act, 2013 is known as a Company.	The company which is formed and registered in or outside India is known as a Corporation.
Defined in section	Section 2 (20) of Indian Companies Act, 2013	Section 2 (11) of Indian Companies Act, 2013
Incorporated	In India	In and Outside India
Minimum Authorized Capital	As per the rules	5 crores
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.