Associations of people allow them to achieve their goals faster and more efficiently, especially when it comes to business or social projects. Companies and organizations are various forms of interaction between citizens and legal entities, which at first glance are synonymous. However, in fact, there are differences between them that affect the understanding of these categories.
Company - it is a legal entity that conducts business and is registered in accordance with the established procedure. A certain legal form corresponds to it: LLC, OJSC, ODO and others. The company can be public and private, as well as mixed.
Organization is an association of individuals or legal entities to achieve common goals. The number of participants is 2 or more, and the activity can be commercial or non-commercial. The organization is engaged in production, implements a social project, is a consumer union, etc.
Based on the data obtained, the company is always created to make a profit, and the organization may have a non-profit character. This is determined not only by the status of the association, but also by its organizational and legal form. Companies are registered as LLCs, ODOs, CJSCs, and organizations can operate informally. In some countries of the world, however, such activity is illegal.
The company always has a management who makes decisions and determines the development of the association. An organization can have a qualitatively different structure, including a network type, where there is no formal administration, and all participants are endowed with equal rights.
- The purpose of the activity. A company is always a commercial enterprise, while an organization may be non-profit.
- Registration and formal status. A public organization can conduct its activities in a free manner. Registration is required for the company's commercial activities.
- Composition. A company is always represented by one legal entity, and an organization can include a whole group of companies.
- Hierarchy. The company is a hierarchical structure with a manager. An organization can have an online status with only leaders and not administrators.