Real Estate

Different types of companies that can be incorporated

If you are thinking of starting a business, you may be thinking of the different types of businesses that are present. Are you wondering what type to form? If yes, it may be a good idea to get to know a few types of companies. This article is intended to inform you about a limited, single member and unlimited company.

Let’s start by describing what a company is.

What is a company?

A company tends to be a legal form, particularly a business organization, which is considered a separate legal entity. Therefore, it is independent and distinct from the people who run it.

Now let’s look at a few types so you can get an idea of ​​which one may be best for you.

A limited partnership

The shares present will be owned by the shareholders it has.

In a limited liability company, it is vital to know that the liability of the shareholders, if the business fails, tends to be limited precisely to the amount, if there is any, of the unpaid remainder of precisely the shares they own.

Being a separate legal entity, this type of business therefore tends to be separate and distinct from the people who run it.

It is important to know that only the company can be sued, particularly for its obligations, and it can also sue to enforce its rights.

There are different types of limited partnerships. This includes a private company limited by shares (LTD company), a designated activity company (DAC), a designated activity company limited by guarantee (DAC), a company limited by guarantee (CLG) and a public limited company (PLC) .

A single member company

This is a business that is incorporated with only one member. Or is it one whose membership tends to be reduced to one individual.

However, the company must have a minimum of two directors plus a secretary. (This case may be reversed if it is from LTD. This may also be such that it is a single director company).

It is up to the sole member not to hold General Meetings, including Annual General Meetings (AGM).

Financial statements along with reports that would normally be submitted prior to your AGM will still need to be prepared and sent to the member.

Remember that all types of companies can be single member companies.

An unlimited company

There is no limit to the liability of the members of an unlimited company.

Creditors can appeal precisely to shareholders, specifically in relation to liabilities that are owned by the company and that it has not been able to liquidate.

This type of company can be public or private. It should have at least two shareholders.

Leave a Reply

Your email address will not be published. Required fields are marked *