A company is controlled and managed by its directors and owned by its shareholders.

A company is a separate legal entity and distinct from its shareholders and directors. It is an ‘artificial legal person’ with the same rights and responsibilities as a natural person. A company can:

• enter into contracts with others
• buy, own and sell property
• sue and be sued.

The Australian Securities and Investments Commission (ASIC) regulates companies. A company is a complex business structure with higher setup and running costs and more reporting requirements than sole trader or partnership structures.