Discover 4 types of companies and discover which one is ideal for your business
Posted: Mon Dec 23, 2024 10:44 am
Before opening your company , it is important to assess whether you need a partner and what type of company your business will fit into. If you have any doubts about this, check out the four main types of companies established in the Civil Code below:
Content
General Partnership
Limited Partnership
Limited Liability Company
Public Limited Company
General Partnership
In this type of company, the liability is divided equally among the partners. Another characteristic is that the corporate name must be the name of the partners, followed by the terms “&Cia” or “Companhia”. In companies like this, only the partners are allowed to manage the company, according to the management powers established in the contract. With regard to participation, it is not mandatory for the partners to integrate the values or assets into the company's share capital, since it is possible to make the provision of services available as their share. Furthermore, it is not possible to use shares of the company to pay the partners' private debts.
Limited Partnership
In this type of company, partners can be of two different categories:
General partners: jointly liable parties and individuals;
Limited partners: only obligated for the value of their respective share.
In addition to this division, another characteristic of a limited partnership is the inclusion of new partners. In order for a new participant to join the partnership, the other partners must approve it. Companies with this partnership can only be managed by the general partners or by people named in the articles of association.
Limited Liability Company
As stated in the new Civil Code, each partner of a Limited Liability Company has a defined liability based on its share capital. However, all partners are jointly and severally liable in the articles of association and for its full payment. For small businesses, this is one of the most recommended types of partnership, as this measure protects the personal assets of partners in the event of debts that are greater than the share capital stated in the agreement. In addition, companies with this type of partnership can be managed by people who are not partners.
Public Limited Company
This company has some specific laws and particular characteristics, starting with the division of its capital, which is made up of shares. Also called a Company, this company is canadian cfo email list formed by at least seven partners. The responsibilities among them are distributed according to the percentage of their shares, which may have been subscribed or subsequently acquired. These shares will be divided into two types of capital:
Publicly held: the capital is represented by shares, and is divided among the various shareholders. The shares are traded on the over-the-counter market or on the stock exchange.
Closed capital: this is the capital represented by shares and divided among a few shareholders. The shares here cannot be traded.
If you do not wish to have a partner in your company, your business is classified as a ME (Individual Entrepreneur) or EIRELI (Individual Limited Liability Company). However, if someone other than you has a stake in the company's capital, this must be documented. If this is not your case now, but may be in the future, you must update the Qualification of Partners and Administrators (QSA) with the Federal Revenue Service. If you are registered as a Microentrepreneur (MEI), no further steps are required to formalize your company.
Content
General Partnership
Limited Partnership
Limited Liability Company
Public Limited Company
General Partnership
In this type of company, the liability is divided equally among the partners. Another characteristic is that the corporate name must be the name of the partners, followed by the terms “&Cia” or “Companhia”. In companies like this, only the partners are allowed to manage the company, according to the management powers established in the contract. With regard to participation, it is not mandatory for the partners to integrate the values or assets into the company's share capital, since it is possible to make the provision of services available as their share. Furthermore, it is not possible to use shares of the company to pay the partners' private debts.
Limited Partnership
In this type of company, partners can be of two different categories:
General partners: jointly liable parties and individuals;
Limited partners: only obligated for the value of their respective share.
In addition to this division, another characteristic of a limited partnership is the inclusion of new partners. In order for a new participant to join the partnership, the other partners must approve it. Companies with this partnership can only be managed by the general partners or by people named in the articles of association.
Limited Liability Company
As stated in the new Civil Code, each partner of a Limited Liability Company has a defined liability based on its share capital. However, all partners are jointly and severally liable in the articles of association and for its full payment. For small businesses, this is one of the most recommended types of partnership, as this measure protects the personal assets of partners in the event of debts that are greater than the share capital stated in the agreement. In addition, companies with this type of partnership can be managed by people who are not partners.
Public Limited Company
This company has some specific laws and particular characteristics, starting with the division of its capital, which is made up of shares. Also called a Company, this company is canadian cfo email list formed by at least seven partners. The responsibilities among them are distributed according to the percentage of their shares, which may have been subscribed or subsequently acquired. These shares will be divided into two types of capital:
Publicly held: the capital is represented by shares, and is divided among the various shareholders. The shares are traded on the over-the-counter market or on the stock exchange.
Closed capital: this is the capital represented by shares and divided among a few shareholders. The shares here cannot be traded.
If you do not wish to have a partner in your company, your business is classified as a ME (Individual Entrepreneur) or EIRELI (Individual Limited Liability Company). However, if someone other than you has a stake in the company's capital, this must be documented. If this is not your case now, but may be in the future, you must update the Qualification of Partners and Administrators (QSA) with the Federal Revenue Service. If you are registered as a Microentrepreneur (MEI), no further steps are required to formalize your company.