If you are thinking of starting a business then you may be thinking about the different types of businesses that are present. Wondering what kind to form? If yes, it may be a good idea to learn about a few types of companies. This article aims to inform you about limited, single member, unlimited company.

Let’s start by describing what a company is.

What is a company?

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

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

a limited company

The present shares will be property of the shareholders that it has.

In a limited liability company, it is vital to know that the shareholders’ liability, if the business fails, tends to be limited to precisely how much, if any, of the remaining unpaid precisely on 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 in particular for its obligations and can also sue to assert its rights.

There are different types of limited companies. 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 it is one whose membership tends to be reduced to a single individual.

However, the company must have a minimum of two directors plus a secretary. (This case can be overturned if it is a limited company. It can also be overturned if it is a single director company.)

It corresponds to the sole member not to hold General Assemblies, including the Annual General Assemblies (AGM’s).

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 partnerships can be sole proprietorships.

An unlimited company

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

Creditors can turn precisely to shareholders specifically with respect to any liability owned by the company that they have failed to meet.

This type of company can be public or private. You must have at least two shareholders.