If you are thinking of starting a business then you might think about various types of companies. Are you wondering what form it? If yes, it might be a good idea to know about some of the types of companies. This article aims to notify you about limited companies, single members, and unlimited.
Let’s start by describing what the company is.
What is the company?
Companies tend to be a legal form, especially business organizations that are considered separate legal entities. Therefore separate together with different individuals who run it.
Now let’s look at some kind so you can get a picture which might be better for you to form.
A limited company
Shares present will be owned by the shareholders they have.
In a limited liability company, it is very important to know that shareholder responsibilities, if the business must fail, tend to be limited to how much, if there is, from the remaining unpaid right on the shares held by them.
Become a separate legal entity, this type of business tends to be separated together with different individuals who run it.
It is important to know that only a business can be prosecuted especially because its obligations can sue to enforce their rights.
There are various types of limited companies. These include private companies Limited by Shares (Ltd Company), a designated activity company (DAC), an activity company designated by Guarantee (DAC), a company that is limited by the warranty (CLG) and public limited company (PLC).
A single member company
This is a business that is joined with only one member. Or is one that membership tends to be reduced into one individual.
However, the company needs to have a minimum of two directions plus secretaries. (This case can be revoked if it is the other. This might also be such that it is a single directory company).
It’s up to the only member not to hold a public meeting, including an annual general meeting (AGM).
Financial statements along with reports that will usually be put before the GMS still have to be prepared to be forwarded to members.
Remember that all types of companies may be a single member company.
An unlimited company
There is no limit to the responsibility of unlimited company members.
A road again can have precisely by creditors to shareholders specifically in connection with any obligation owned by the company that it cannot be discarded.
This type of company may be public or personal. It should have at least two shareholders.