Company vs. Organization — What's the Difference?
By Tayyaba Rehman & Fiza Rafique — Updated on September 12, 2023
A company is a specific type of organization focused on conducting business to earn a profit. An organization is a broader term that includes various groups formed for any collective purpose, whether or not for profit.
Difference Between Company and Organization
Table of Contents
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Key Differences
A company is generally a for-profit entity that engages in business activities, such as selling goods or providing services, with the primary goal of earning money. An organization, on the other hand, is a more general term that refers to a group of people working together toward a common goal, which may or may not be profit-driven.
Companies usually operate under stricter regulations because they have shareholders, and they are often subject to taxes and laws specific to their type of business. Organizations can be non-profit, government agencies, or social clubs, and thus may operate under different types of regulations and structures.
The structure of a company is often rigid, with clearly defined hierarchies, departments, and roles to maximize profitability. Organizations may have a more flexible structure, especially if they are non-profit or volunteer-based, focusing on collaboration and community involvement.
Companies are often limited in scope to their specific industry or market, targeting their services or products to a particular group. Organizations can be diverse, encompassing a wide range of activities and purposes, from humanitarian aid to recreational clubs.
Comparison Chart
Purpose
Primarily for-profit
Can be for-profit or non-profit
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Regulations
Subject to business laws
Varies depending on type
Structure
Typically hierarchical
Can be hierarchical or flat
Scope
Limited to specific industry
Can be broad or specific
Taxation
Subject to corporate taxes
Varies; non-profits may be tax-exempt
Compare with Definitions
Company
A business entity formed to sell goods or services.
The company launched its new product.
Organization
A group of people working toward a common goal.
The organization aims to end poverty.
Company
A group of actors performing a show.
The theater company received rave reviews.
Organization
An entity that coordinates efforts to achieve a mission.
The World Health Organization.
Company
People you spend time with.
He kept good company.
Organization
A systematic arrangement or approach.
The organization of the event was superb.
Company
Military unit of soldiers.
The company was sent on a mission.
Organization
A club or social group formed for mutual benefits.
The student organization raised funds.
Company
A term in legal contexts to refer to business entities.
The company was sued for malpractice.
Organization
A legal entity that can hire employees, form contracts.
The organization has a global presence.
Company
A company, abbreviated as co., is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objective. Company members share a common purpose and unite to achieve specific, declared goals.
Organization
An organization, or organisation (Commonwealth English; see spelling differences), is an entity – such as a company, an institution, or an association – comprising one or more people and having a particular purpose. The word is derived from the Greek word organon, which means tool or instrument, musical instrument, and organ.
Company
A commercial business
A company director
A shipping company
The Ford Motor Company
Organization
The act or process of organizing
The organization of the photos did not take long.
Company
The fact or condition of being with another or others, especially in a way that provides friendship and enjoyment
I really enjoy his company
Organization
The state or manner of being organized
The organization of the files could be improved.
Company
A number of individuals gathered together
The Mayor addressed the assembled company
Organization
A manner of accomplishing something in an orderly or efficient way
Your project was hampered by your lack of organization.
Company
A flock of wigeon (ducks)
A company of wigeons occasionally numbers several thousand birds
Organization
A group of persons organized for a particular purpose; an association or business.
Company
Associate with; keep company with
These men which have companied with us all this time
Organization
The administrative personnel of such a structure
Contacted the organization with his complaint.
Company
A group of persons
A company of scientists.
Organization
(uncountable) The quality of being organized.
This painting shows little organization at first glance, but little by little the structure becomes clear.
Company
One's companions or associates
Moved in fast company.
Is known by the company she keeps.
Organization
(uncountable) The way in which something is organized, such as a book or an article.
The organization of the book is as follows.
Company
A guest or guests
Had company for the weekend.
Organization
(countable) A group of people or other legal entities with an explicit purpose and written rules.
In response to the crisis, the nations in the region formed an organization.
If you want to be part of this organization, you have to follow its rules.
Company
The state of friendly companionship; fellowship
Was grateful for her company.
Friends who finally parted company.
Organization
(countable) A group of people consciously cooperating.
Over time, the spontaneous movement had become an organization.
Company
A business enterprise; a firm.
Organization
(baseball) A major league club and all its farm teams.
He's been in the Dodgers' organization since 2003.
Company
A partner or partners not specifically named in a firm's title
Lee Rogers and Company.
Organization
The act of organizing; the act of arranging in a systematic way for use or action; as, the organization of an army, or of a deliberative body.
Company
A troupe of dramatic or musical performers
A repertory company.
Organization
The state of being organized.
Company
A subdivision of a military regiment or battalion that constitutes the lowest administrative unit. It is usually under the command of a captain and is made up of at least two platoons.
Organization
That which is organized; an organized existence; an organism
The cell may be regarded as the most simple, the most common, and the earliest form of organization.
Company
A unit of firefighters.
Organization
A group of persons associated together for a common purpose and having a set of rules which specify the relations of the individual members to the whole gorup.
Company
A ship's crew and officers. See Usage Note at collective noun.
Organization
The manner in which something is organized; the relations included in an organized state or condition; as, the organization of the department permits ad hoc groups to form.
What is organization but the connection of parts in and for a whole, so that each part is, at once, end and means?
Company
To accompany or associate with.
Organization
A group of people who work together
Company
To keep company with someone; associate.
Organization
An organized structure for arranging or classifying;
He changed the arrangement of the topics
The facts were familiar but it was in the organization of them that he was original
He tried to understand their system of classification
Company
A team; a group of people who work together professionally.
Organization
The persons (or committees or departments etc.) who make up a body for the purpose of administering something;
He claims that the present administration is corrupt
The governance of an association is responsible to its members
He quickly became recognized as a member of the establishment
Company
A group of individuals who work together for a common purpose.
A company of actors.
Organization
The act of forming something;
The constitution of a PTA group last year
It was the establishment of his reputation
He still remembers the organization of the club
Company
(military) A unit of approximately sixty to one hundred and twenty soldiers, typically consisting of two or three platoons and forming part of a battalion.
The boys in Company C
Organization
The act of organizing a business or business-related activity;
He was brought in to supervise the organization of a new department
Company
A unit of firefighters and their equipment.
It took six companies to put out the fire.
Organization
The activity or result of distributing or disposing persons or things properly or methodically;
His organization of the work force was very efficient
Company
(nautical) The entire crew of a ship.
Organization
An ordered manner; orderliness by virtue of being methodical and well organized;
His compulsive organization was not an endearing quality
We can't do it unless we establish some system around here
Company
An intelligence service.
As he had worked for the CIA for over 30 years, he would soon take retirement from the company.
Company
A small group of birds or animals.
Company
(legal) An entity having legal personality, and thus able to own property and to sue and be sued in its own name; a corporation.
Company
(business) Any business, whether incorporated or not, that manufactures or sells products (also known as goods), or provides services as a commercial venture.
Company
(uncountable) Social visitors or companions.
Keep the house clean; I have company coming.
Company
(uncountable) Companionship.
I treasure your company.
Company
To accompany, keep company with.
Company
To associate.
Company
To be a lively, cheerful companion.
Company
The state of being a companion or companions; the act of accompanying; fellowship; companionship; society; friendly intercourse.
Evil company doth corrupt good manners.
Brethren, farewell: your company alongI will not wish.
Company
A companion or companions.
To thee and thy company I bidA hearty welcome.
Company
An assemblage or association of persons, either permanent or transient.
Thou shalt meet a company of prophets.
Company
Guests or visitors, in distinction from the members of a family; as, to invite company to dine.
Company
Society, in general; people assembled for social intercourse.
Nature has left every man a capacity of being agreeable, though not of shining in company.
Company
An association of persons for the purpose of carrying on some enterprise or business; a corporation; a firm; as, the East India Company; an insurance company; a joint-stock company.
Company
Partners in a firm whose names are not mentioned in its style or title; - often abbreviated in writing; as, Hottinguer & Co.
Company
A subdivision of a regiment of troops under the command of a captain, numbering in the United States (full strength) 100 men.
Company
The crew of a ship, including the officers; as, a whole ship's company.
Company
The body of actors employed in a theater or in the production of a play.
Company
To accompany or go with; to be companion to.
Company
To associate.
Men which have companied with us all the time.
Company
To be a gay companion.
Company
An institution created to conduct business;
He only invests in large well-established companies
He started the company in his garage
Company
Organization of performers and associated personnel (especially theatrical);
The traveling company all stayed at the same hotel
Company
The state of being with someone;
He missed their company
He enjoyed the society of his friends
Company
Small military unit; usually two or three platoons
Company
A band of people associated temporarily in some activity;
They organized a party to search for food
The company of cooks walked into the kitchen
Company
A social gathering of guests or companions;
The house was filled with company when I arrived
Company
A social or business visitor;
The room was a mess because he hadn't expected company
Company
A unit of firefighters including their equipment;
A hook-and-ladder company
Company
Crew of a ship including the officers; the whole force or personnel of a ship
Company
Be a companion to somebody
Common Curiosities
Who Owns a Company?
A company is usually owned by shareholders.
What is an Organization?
An organization is a collective group formed for any purpose.
Can a Company be a Non-Profit?
Generally, companies are for-profit, but some are non-profit.
What is a Company?
A company is a for-profit entity focused on conducting business.
Can an Organization Sell Products?
Yes, some organizations sell products as part of their activities.
Are Organizations Tax-Exempt?
Some non-profit organizations may be tax-exempt.
Is a Company an Organization?
A company is a specific type of organization.
How is a Company Taxed?
Companies are generally subject to corporate taxes.
What Laws Govern Organizations?
Varies; can be subject to charity law, trust law, etc.
Can a Company be Global?
Yes, many companies operate internationally.
Is an Organization a Company?
Not necessarily; organizations can exist for non-commercial purposes.
Who Manages an Organization?
Organizations can be managed by boards, volunteers, or members.
Do Companies have to Disclose Financials?
Public companies do, but private ones generally do not.
Can an Organization be Unincorporated?
Yes, organizations can exist informally.
What Laws Govern Companies?
Companies are governed by commercial and corporate laws.
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Written by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
Co-written by
Fiza RafiqueFiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
