I've just understood the concept of writing a contract. It is just an agreement between two people written on the paper and signed by all the parties involved. So, if it is possible to write contracts, then why do we need a specific law for companies? Can't we construct a company simply wording our terms and declaring all the rules of the "company" in a contract without registration?
For example, one of the benefits of registering a company is its liability shield it gives us. So why not mention in the contract "no individual mentioned in this contract is liable..." (please forgive me if my question is naive). Another benefit of a company is, being able to issue shares. So to cover this, the contract could contain "All assets mentioned have a shared ownership. Each person in the contract is assigned certain 'ownership points' (a different word for shares). And these ownership points declare each individual's ownership of the asserts..."
Couldn't we implement all the features of a company, one after the other, simply by writing a contract? Please tell me why this isn't possible and what I don't understand. And again, sorry for this naive question.
I would like to hear this answer in the context of any country. Though I would be able to relate well, when answered in the context of India.