LawFarm- Advice & Lawyers Online

Share on facebook
Share on linkedin

Difference between Business and Company Law

Although the terms “company law” and “business law” are sometimes used interchangeably, they actually refer more to broader ideas of commercial law, which is the laws pertaining to commercial and business-related purposes and activities.  In some cases, this may include matters relating to corporate governance or financial law.   Business law is the body of law that regulates business and commerce dealings between individuals in commercial matters, whether by convention, agreement, or national or international legislation. It is frequently regarded as a branch of civil law that deals with both private law and public law issues. The regulation of business transactions by the laws of contracts and related topics are two independent areas that fall under the umbrella of business law. Commercial law is the name of this field. This area also includes Tax Law, Securities Law, which deals with transactions involving shares and debentures, and a plethora of other disciplines. 

The laws governing corporations, partnerships, agencies, and bankruptcy, govern business enterprises. This subject is called corporate law. The legal practice of law pertaining to corporations is referred to as corporate law. Corporate law is a term used to refer to the body of law that deals with issues that directly relate to a corporation’s life cycle. Thus, it can be said to include the creation, financing, administration, and dissolution of a corporation.


The majority of lawyers that practise will have experience in both business law and corporate law because they have so many similar difficulties. Corporate law deals with issues that primarily affect corporations, such as how businesses operate, what their management is responsible for, how shareholders are treated, and other related issues. A corporation is viewed by-laws as existing independently from its owners. A company may enter into contracts, bring legal action, or be sued, among other things. Corporate lawyers typically focus on commercial transactions that need the creation and review of contracts and agreements, guidance on handling international trade in goods, mergers and acquisitions, investor rights, and other matters relating to the corporate structure. Business lawyers typically handle additional aspects of the firm, such as reviewing partnership agreements and contracts, creating a business plan for investors, doing research, handling employment legal matters, and even handling financial and tax requirements.

Government agencies at the state and federal levels oversee business law. Both of these governments take on quite distinct responsibilities when enforcing business law. The Ministry of Corporate Affairs (MCA) is in charge of and controls Corporate Law, through the Companies Act (2013). In this act, topics such as the organization’s disintegration, organisation consolidation and obligations, and the roles of various individuals are discussed. Even when it comes to mergers, acquisitions, policies for the launch or growth of organisations, and investor rights, Business Law and Corporate Law play distinct roles. 

While Corporate Law focuses on the operations, activities, and legitimacy of an organisation, Business Law deals with the underlying laws necessary for an organization’s foundation. Simply put, corporate lawyers prepare the contracts, which are then reviewed by business lawyers. Similar to how business law enforces policies and manages employee manuals, corporate law helps a corporation with its behind-the-scenes legal requirements while also helping to prevent lawsuits. It is also the responsibility of professionals who practise business law to ensure that a corporation conforms with and abides by local laws.

They can also be distinguished according to the goals of each law. The goal of business law is to ensure that the corporation follows the law while also promoting industrial development and assisting the corporation to travel in the desired path. Unlike corporate law, which only seeks to maximise the welfare of all parties associated with corporations—including, but not limited to, Directors, Shareholders, and Investors—by properly governing the corporation through a variety of clauses and documents, such as the Memorandum of Association and Articles of Association. Another crucial distinction is that while Corporate Law does not require going before a court, Business Law considerably increases the likelihood of needing to do so.


Thus it can be observed that while comparing Business Law and Corporate Law, it becomes much clearer when envisaging a corporation, dealing with both, like life, with Nature(Corporate Law) dealing with the inner structure of the body, i.e Corporation in this case, and the creation and winding up of it, while the person (Business law) deals with the smooth functioning of life and making sure the body abides by the rules and works towards its growth.

  • The Anatomy of Corporate Law: A Comparative and Functional Approach by R. Kraakman, J. Armour, P. Davies, L. Enriques, H. Hansmann, G. Hertig, K. Hopt, H. Kanda, E. Rock
  • THE ESSENTIAL ELEMENTS OF CORPORATE LAW: WHAT IS CORPORATE LAW? By John Armour, Henry Hansmann, Reinier Kraakman in The Harvard John M. Olin Discussion Paper Series
  • Adam Winkler, Corporate Law or the Law of Business: Stakeholders and Corporate Governance at the End of History, 67 LAW & CONTEMP. Probs. 109 (2004).
  • Romano, R. (2005). After the Revolution in Corporate Law. Journal of Legal Education, 55(3), 342–359.
By Ananya Bhat