In common usage, ‘Company’ means an association of persons associated for some common purpose. The common object may be business, charity, research etc. The persons are united for achieving a common objective, normally, for earning profits, which are shared by the investors. Definition of Company: Section 3 (1) (i) of the Companies Act, 1956 defines a company as: “A company registered and formed under this Act or an existing company.” The above definition does not give clear description about the company. The definition provided by Haney gives a better view about the essential elements of a company. According to Haney, “A company is an incorporated association which is an artificial person created for by law, having a separate entity, with a perpetual succession and a common seal.” The characteristics of the company give a better picture about the essential elements mentioned in the above definition. Let us discuss those characteristics that describe the company, comprehensively.