Under the civil law, the metaphor of corporate personality justify the existence of corporation as a legal person. As a legal person, a company is granted the power to limit liability of its members for debts of the business. Members of the companies is only liable up to the amount of their shareholding. Although Shirkah al-Inan is commonly assumed by Shariah scholars to be similar to a civil corporation, there are many r differences between the two entities that to equate the two as similar entity would be a legal misconception.This paper analyzes the legal status of civil corporations and compare them with Shirkah al-Inan to highlight major differences between the two entities. Special reference is made to the scope of liability to highlight one of the major misunderstanding Research methodology adopted in this paper are statutory and doctrinal analysis.