In the field of business and finance, commercial companies play a fundamental role in the legal and operational structure of many companies. These business entities are characterized by their ability to generate income, have their own legal existence and share responsibilities among their partners or shareholders. In this article, we will explore the 5 main types of commercial companies, their distinctive characteristics and their legal and financial implications.
Collective Company
The general partnership is one of the oldest types of business structures. In this type of company, the partners share the management and unlimited responsibility for the company's debts. In other words, all partners are considered personally liable for the debts of the partnership, which means that their personal assets are also at risk in the event of bankruptcy or financial problems.
Decision making in a partnership A general partnership is usually more democratic, since all partners participate in the management of the company and have a say in important decisions. However, this structure can also generate conflicts between partners, since decisions must be made by consensus.
Main characteristics of a general partnership:
- Unlimited liability of the partners.
- Shared management among all partners.
- Decisions made jointly.
- Partners considered as individual owners.
Limited Partnership
The limited partnership is characterized by the coexistence of two types of partners: general partners, who participate in the management of the company and have unlimited liability, and limited partners, who They contribute capital but do not participate in the management and have liability limited to their capital contribution.
This structure allows limited partners to participate in the company's profits without exposing themselves to the risk of losing more than what they invested. On the other hand, general partners assume responsibility for the management and debts of the company, which gives them greater control over operations.
Main characteristics of a limited partnership:
- Coexistence of general and limited partners.
- Unlimited liability of general partners.
- Limited liability of limited partners.
- Participation in the benefits for all partners.
Limited Liability Company (SRL)
The limited liability company (SRL) is one of the most common forms of business structure. In this type of company, the liability of the partners is limited to the contributed capital, which means that they are not personally exposed to the company's debts beyond their initial investment.
The LLC is characterized by have a limited number of partners, generally between 1 and 50, and for offering greater flexibility in terms of management and organizational structure. The partners of an LLC can be natural or legal persons, and decision-making is usually more agile and efficient than in other types of companies.
Main characteristics of a limited liability company (SRL):
- Limited liability of the partners.
- Limited number of partners (between 1 and 50).
- Flexibility in management and organizational structure. li>
- Agility in decision making.
Stock Company (SA)
The stock company (SA) is a business structure that is characterized by the issuance of negotiable shares on the stock market. In a SA, the liability of shareholders is limited to the capital contributed in the form of shares, which means that they are not personally exposed to the debts of the company beyond their investment in shares.
One of The main advantages of a public limited company is the possibility of attracting external investors through the issuance of shares on the stock market. This allows the company to finance its growth and expansion through the entry of new shareholders, without compromising management control by the founding partners.
Main characteristics of a public limited company (SA):Main characteristics of a public limited company (SA):
- Issue of shares tradable on the stock market.
- Limited liability of shareholders.
- Possibility of attracting external investors.
- Separation between ownership and management.
Limited Partnership by Shares
The limited partnership by shares is a combination of the limited partnership and the public limited company. In this type of company, two types of partners coexist: limited partners, who contribute capital and have liability limited to their shares, and limited partners, who participate in management and have unlimited liability.
This structure allows you to combine the benefits of the limited liability of shareholders with the active participation of managers in decision-making and the strategic direction of the company. The issuance of shares tradable on the stock market facilitates the entry of new investors and the financing of business growth.
Main characteristics of a limited company by shares:
- Coexistence of partners limited and limited partners.
- Limited liability of shareholders.
- Unlimited liability of limited partners.
- Issue of shares tradable on the stock exchange.
In conclusion, the different types of commercial companies offer flexible options for the organization and management of companies, each with its own characteristics and advantages. The choice of the most appropriate type of company will depend on the commercial, financial and legal objectives of the company, as well as the preferences and circumstances of the partners or shareholders involved.