A BUSINESS ENTITY is an entity that is formed and administered as per
corporate law in order to engage in business activities, charitable
work, or other activities allowable. Most often, business entities are
formed to sell a product or a service. There are many types of
business entities defined in the legal systems of various countries.
These include corporations , cooperatives , partnerships , sole
traders , limited liability company and other specifically permitted
and labelled types of entities. The specific rules vary by country and
by state or province. Some of these types are listed below, by
country. For guidance, approximately equivalents in the company law of
English-speaking countries are given in most cases, ≈ public
limited company (UK, Ireland and the Commonwealth) ≈
However, the regulations governing particular types of entity, even those described as roughly equivalent, differ from jurisdiction to jurisdiction.
When creating or restructuring a business, the legal responsibilities will depend on the type of business entity chosen.
* 84.1 Tax classifications * 84.2 Federally incorporated
* 84.3 State, territory or commonwealth incorporated
* Sh.A. (Shoqëri Aksionere): ≈ PLC (UK)
* Sh.p.k. (Shoqëri me përgjegjësi të kufizuar): ≈
* S.A. (Sociedad Anónima): ≈ plc (UK)
* S.R.L. (Sociedad de Responsabilidad Limitada): ≈
ILP (Incorporated limited partnership): used for venture capital investments comes in four types: Venture Capital Limited Partnership (VCLP), Early-stage Venture Capital Limited Partnership (ESCVLP), Australian Venture Capital Fund of Funds (AFOF), Venture Capital Management Partnership (VCMP).
* See also:
Corporations Act 2001 Inc. (Incorporated): restricted
to non-profit associations
* Gen (Genossenschaft; types: Erwerbs- und Wirtschaftsgenossenschaft): ≈ cooperative * Privatstiftung: ≈ private foundation * Verein: ≈ nonprofit association * European business entities * e.U. (eingetragenes Einzelunternehmen): ≈ sole trader (UK), sole proprietorship (US)
* Kapitalgesellschaften: ≈ companies
* Personengesellschaften: ≈ partnerships
* unincorporated (i.e. unregistered and without legal personality):
* stG (stille Gesellschaft): ≈ partnership by estoppel (i.e., no partnership agreement) * GesbR (Gesellschaft des bürgerlichen Rechts): ≈ partnership by contract (i.e., formed by partnership agreement); statutes and regulations concerning Austrian companies, especially with regards to the companies register (Firmenbuch), do not apply.
* incorporated (i.e. registered and with legal personality):
* OG (offene Gesellschaft): ≈ general partnership
* KG (Kommanditgesellschaft): ≈ limited partnership
* GmbH minimum capital: HRK 20,000 * J.D.O.O. (jednostavno društvo s ograničenom odgovornošću): simple Ltd.; minimum capital: HRK 10 (same liabilities as an Ltd., but annually has to set aside 25% of profit to collect enough equity capital to become d.o.o.) * J.T.D. (javno trgovačko društvo): ≈ general partnership * K.D. (komanditno društvo): ≈ limited partnership * GIU (gospodarsko interesno udruženje): economic interest grouping * ZADRUGA: cooperative
Types of natural person business entities:
* OBRT: ≈ sole proprietorship ; several types: slobodni, vezani, and povlašteni obrt (free, tied, and privileged proprietorship registered according to profession; tied and privileged proprietorships are those only master craftsmen can register,) paušalni obrt, obrt-dohodaš, obrt-dobitaš (flat-rate proprietorship, income tax p., profits tax p.; these are registered according to the type of taxation; first two are obligated to pay income tax and the last one is obligated to pay profits tax), sezonski obrt (seasonal proprietorship, that runs for a limited number of months during a year) * ORTAKLUK: partnership of two or more sole proprietors * SLOBODNA DJELATNOST: free profession; self-employment but only for certain types of professions: e.g. artists, journalists, lawyers, etc.; freelancing (similar to sole proprietors in their obligations) * DOMAćA RADINOST and SPOREDNO ZANIMANJE: home business and side profession; limited forms of self-employment aimed at registering supplementary income from, say, small repairs or hobbies * OPG (obiteljsko poljoprivredno gospodarstvo): family run agricultural business
* a.s. , akc. spol. (
Akciová společnost ): ≈ plc (UK). Minimum
share capital CZK 2 000 000. Must have a supervisory board in addition
to the management board.
* s.r.o. , spol. s r.o. (
Společnost s ručením omezeným ): ≈
* Enkeltmandsvirksomhed: sole proprietorship * Forening: ≈ association * I/S (Interessentskab): ≈ general partnership . * IVS (Iværksætterselskab): private limited company startup with limited equity capital. Must use 25% of profit to collect enough equity capital to become an ApS. * ApS (Anpartsselskab): private limited company . * A/S (Aktieselskab): public limited company . * K/S (Kommanditselskab): limited partnership * P/S (Partnerselskab or Kommanditaktieselskab): partnership limited by shares * A.M.B.A. (Andelsselskab med begrænset ansvar): limited liability co-operative . * F.M.B.A. (Forening med begrænset ansvar): limited liability voluntary association . * S.M.B.A. (Selskab med begrænset ansvar): limited liability company . * Partsrederi: A form of combined and continued ownership of a merchant vessel. * Erhvervsdrivende fond: commercial foundation * G/S (Gensidigt selskab): mutual organization
* C. por A. (Compañía por Acciones), also abbreviated CXA
* S.A. (Sociedad Anónima): ≈ public limited company
* S.A.S (
Sociedad Anónima Simplificada): ≈
* SRL. (Sociedad de Resposabilidad Limitada): ≈ Limited Liability
* S.A. (Sociedad Anónima): ≈ public limited company
* C.A. (Compañía Anónima)
* Cía. Ltda. (Compañía Limitada): ≈ Limited Liability
* SAE (Sharikat al-Mossahamah) ≈ plc (UK). Minimum capital EGP
* LLC (Limited Liability Company) ≈
* FIE (Füüsilisest isikust ettevõtja): ≈ sole trader (UK), sole proprietorship (US)
* UÜ (Usaldusühing): ≈ limited partnership * TÜ (Täisühing): ≈ general partnership
* OÜ (Osaühing): ≈ (Ltd.) private limited company (UK), (LLC) limited liability company (US) * AS (Aktsiaselts): ≈ (PLC) public limited company (UK), corporation (US)
* Tulundusühistu: ≈ commercial association * MTÜ (Mittetulundusühing) ≈ nonprofit organization
* PLC ( Private limited company Amharic ሃላፊነቱ የተወሰነ የግል ማህበር) * SC (Share company Amharic አክሲዩን ማህበር) * CS (cooperative societies Amharic ህብረት ስራ ማህበራት) * PE or PC (public enterprises or public corporations Amharic የመንግስት ልማት ድርጅቶች or ኮርፖሬሽን)
EUROPEAN ECONOMIC AREA (INCLUDING THE EUROPEAN UNION )
* EEIG (European Economic Interest Grouping): an EU legal entity designed to enable cross-border cooperation between companies. It has unlimited liability and is not liable for corporation tax .
* SCE (Societas Cooperativa Europaea): a European Cooperative
Societas Cooperativa Europaea is
An SE or SCE may be created by registration in any of the EU/EEA
Member States, and is subject to the European
General economic entities
* Ay (avoin yhtiö, Swedish : öppet bolag): ≈ general partnership
* Ky (kommandiittiyhtiö, Swedish : kommanditbolag, Kb): ≈ limited
* Oy (osakeyhtiö , Swedish : aktiebolag, Ab): ≈
The abbreviations are usually in Finnish, but Swedish names may also be used either as is or in combination with Finnish, e.g. Oy Yritys Ab. Non-profit entities
* rekisteröity yhdistys , abbr. ry (Swedish : förening, abbr. rf):
registered association , capable of acting as a legal person
* rekisteröity puolue, abbr. rp Swedish : registrerat parti):
registered political party
* säätiö, abbr. rs (Swedish : stiftelse): foundation
* uskonnollinen yhdyskunta (Swedish : religionssamfund), religious
* voluntary associations chartered by statute law (e.g. Finnish Red
Cross , National Defence Training Association of
For-profit entities of public law
* valtion liikelaitos (Swedish : statens affärsverk): commercial government agency, expected to fund themselves, but debts directly backed by state funds—distinguished from regular companies where the government owns stock. (See: List of Finnish government enterprises ) * kunnallinen liikelaitos (Swedish : kommunal affärsverk): municipal enterprise, similar as previous but run by a municipality * paliskunta : a reindeer herding corporation, governed like a stock company except that the "stocks" are reindeer
Economic entities for special purpose
* asunto-osakeyhtiö (Swedish : bostadsaktiebolag), a limited liability company for the ownership, construction and maintenance of an apartment building * julkinen keskinäinen vakuutusyhtiö, abbreviated jy (Swedish : publikt ömsesidigt försäkringsbolag), public mutual insurance company * keskinäinen kiinteistöosakeyhtiö (Swedish : ömsesidiga fastighetsaktiebolag, a limited liability company for the ownership, maintenance and construction of real property. * keskinäinen vakuutusyhtiö (Swedish : ömsesidigt försäkringsbolag), mutual insurance company * laivaisännistöyhtiö (Swedish : partrederi), a type of general partnership for the owning of a merchantman * säästöpankki (Swedish : sparbank), a type of loans and savings association
Real estate law corporations
In the corporations of real estate law, the ownership or membership may be vested either in the real property or in a legal or natural person, depending on the corporation type. In many cases, the membership or ownership of such corporation is obligatory for a person or property that fulfils the legal requirements for membership or wishes to engage in certain activities.
* keskivedenkorkeuden muuttamista varten perustettu yhteisö (Swedish : Sammanslutning som bildas för höjning av medelvattenståndet), a corporation of water law for the permanent change of the median water level * ojitusyhteisö (Swedish : dikningssammanslutning), a corporation of water law for the construction and maintenance of ditches * säännöstely-yhteisö (Swedish : regleringssammanslutning), a corporation of water law for the regulation of water level in a body of water * tiekunta (Swedish : väglag), a type of limited-liability corporation for the maintenance of private road * uittoyhteisö (Swedish : flottningssammanslutning), a corporation of water law for timber-floating * vesioikeudellinen yhteisö (Swedish : vattenrättslig sammanslutning), a corporation of water law for a project that involves economic use of bodies of water * yhteisalue (Swedish : samfälliga område), a corporation for the maintenance of a real property jointly used by several other properties or persons * yhteismetsä (Swedish : samfälld skog), a jointly owned forest * osakaskunta (historically "jakokunta"), a partition unit , i.e. a corporation for maintenance of the commons.
In addition to native types,
* SE (Eurooppayhtiö), European
* Micro-entreprise: special framework for minute businesses , a recent addition to French business law -with both revenue and pre-tax net income caps, of which Auto-entrepreneur (below) is a special case
* Freelancers , individual independent contractors :
* Auto-entrepreneur: ≈ self-employed (UK), independent contractor
(US), a recent addition to French business law -with both a revenue
cap and a specific set of derogatory income tax rates
Profession libérale: ≈ sole proprietorship such as a medical
practice , an enduring entity stemming from the protected status
designed for "liberal professions " with unlimited personal liability
* Sociétés d\'exercice libéral: the incorporated equivalent of
the latter, sole shareholder limited liability being key
* EI (Entreprise individuelle/entreprise en nom personnel):
* EURL, SASU (U- unipersonnelle): limited liability, sole
* Investment funds /companies:
* FCP ( Fond commun de placement ): unincorporated investment fund * Société d'investissement à capital fixe: ≈ investment trust (UK); closed-end fund (CEF), closed-end company (US); listed investment company (LIC) (Au) * SICAV (Société d'investissement à capital variable): ≈ investment company with variable capital (ICVC), open-ended investment company (OEIC) (UK); mutual fund , open-end company (US)
* GIE (Groupement d'intérêt économique): economic interest grouping
* Association: ≈ nonprofit association
* Association non-déclarée: ≈ unincorporated association (UK) * Association déclarée: ≈ incorporated association (Au)
* Partnerships (société de personnes):
* SEP (Société en participation): ≈ equity partnership * SNC (Société en nom collectif): ≈ general partnership (GP) * SCS (Société en commandite simple): ≈ limited partnership (LP) * SCA (Société en commandite par actions): ≈ publicly traded partnership (PTP) (US) * SCI (Société Civile Immobilière): ≈ French property company (SCI)
* Companies (société de capitaux):
* SARL , SàRL (Société à responsabilité limitée): ≈ private
limited company (
* EURL (Entreprise unipersonnelle à responsabilité limitée): ≈ single shareholder limited company (SME Pvt) (UK)
* stock companies (société par actions)
* SA (Société anonyme): ≈ public limited company (plc ) (UK), corporation (US/Can)
* SCOP ( Société coopérative de production): ≈ cooperative corporation (Can) * SEM (Société d'économie mixte): ≈ government-owned corporation
* SAS (Société par actions simplifiée): ≈ unlisted public company (Au), close corporation (CC) (S. Africa), private corporation (Can); often used for subsidiaries ; minimum of one director and two members/shareholders; no limit on share capital; liability can be restricted to director; no "one share - one vote" principle
* Einzelunternehmen: individual entrepreneur ≈ sole trader (UK), sole proprietorship ; only professional services, agriculture and forestry as well as small commercial businesses * Eingetragener Kaufmann (male/both genders)/eingetragene Kauffrau (female) (e.K./e.Kfm./e.Kfr.): registered merchant ≈ sole trader (UK), sole proprietorship (US); individual entrepreneur with commercial business (Handelsgewerbe)
* partnerships (Personengesellschaften )
* Gesellschaft bürgerlichen Rechts (GbR), BGB-Gesellschaft: simple partnership; no minimum capital, two or more partners, unlimited liability of partners, no commercial business (Handelsgewerbe) that is not small.
* nicht-eingetragener Verein: un-incorporated association ; non-commercial/idealistic purposes only; similar to e.V.
* commercial partnerships (Personenhandelsgesellschaften)
* Offene Handelsgesellschaft (OHG): literally "open business company" ≈ general partnership : no minimum capital, unlimited liability of partners; GbR with commercial business (Handelsgewerbe)
* Kommanditgesellschaft (KG) ≈ limited partnership
* In case the general partner is a limited company, the legal form of the general partner must be included in the name of the company, resulting in combined legal forms such as:
* Partnerschaftsgesellschaft mit beschränkter Berufshaftung (PartGmbBH): partnership company with limited professional liability ≈ limited liability partnership (US); only for professional services
* Partenreederei: combined and continued ownership of a single merchant vessel; no longer available for new businesses since 24 April 2013.
* eingetragener Verein (e.V.): incorporated association ; non-commercial/idealistic purposes only, commercial business cannot be the main purpose of the e.V.
* altrechtlicher Verein/rechtsfähiger Verein (r.V.): association established before 1 January 1900; extremely rare * wirtschaftlicher Verein: commercial purpose, established by public grant; rare
* Companies limited by shares (equity) (Kapitalgesellschaften)
* Kommanditgesellschaft auf Aktien (KGaA): ≈ publicly traded partnership (US); although it is a company limited by shares, the KGaA has at least one general partner whose liability is not limited
* As with the KG, the legal form of the general partner must be included if it is another limited company, resulting in combined legal forms such as:
GmbH & Co. KGaA: the general partner is a GmbH
* AG English: /ˈɡeɪɛmbeɪhɑː/ ; German pronunciation: ):
company with limited liability ≈ private limited company (
* The "mit beschränkter Haftung (mbH)" suffix (English: /ɛmbeɪhɑː/ ; German pronunciation: ) ("with limited liability") is sometimes added to the name of a firm that already ends in "-gesellschaft" ("company"), e.g., "Mustermann Dental-Handelsgesellschaft mit beschränkter Haftung" ("dental trading company with limited liability"), which would be abbreviated as "Mustermann Dental-Handelsgesellschaft mbH". * Unternehmergesellschaft (haftungsbeschränkt) (UG (haftungsbeschränkt)): literally "entrepreneurship company (with limited liability)": identical to GmbH but with a minimum capital of €1 (times the number of shares); part of earnings needs to remain in the company to reach a minimum equity of €25,000.
* Aktiengesellschaft (AG ): literally "stock company" ≈ public limited company (plc) (UK), corporation (US); minimum seven Minimum capital €50,000; the word haftungsbeschränkt ("with limited liability") may not be abbreviated
* eingetragene Genossenschaft (e.G.): registered cooperative * Körperschaft des öffentlichen Rechts: corporation under public law; main purpose is non-commercial, part of public administration
* Stiftung ≈ (private) foundation , trust * Stiftung des öffentlichen Rechts: foundation under public law; main purpose is non-commercial, part of public administration * Anstalt des öffentlichen Rechts: institution under public law; main purpose is non-commercial, part of public administration
* A.E. (Anónimi Etería / Ανώνυμη Εταιρεία, Α.Ε.): ≈ plc (UK), minimum capital €24,000
* A.V.E.E. (Anónimi Viomihanikí Emborikí Etería / Ανώνυμη Βιομηχανική Εμπορική Εταιρεία, Α.Β.Ε.Ε.)
* E.E. (Eterórithmi Etería / Ετερόρρυθμη Εταιρία, Ε.Ε.): limited partnership
* E.P.E. (Etería Periorisménis Euthínis / Εταιρεία
Περιορισμένης Ευθύνης, Ε.Π.Ε.): ≈
* M.E.P.E. (Monoprósopi Etería Periorisménis Euthínis / Μονοπρόσωπη Ε.Π.Ε., Μ.Ε.Π.Ε.): type of E.P.E. with a single member
* O.E. (Omórithmi Etería / Ομόρρυθμη Εταιρεία, Ο.Ε.): general partnership
* O.V.E.E. (Omórithmi Viomihanikí Emborikí Etería / Ομόρρυθμη Βιομηχανική Εμπορική Εταιρεία, Ο.Β.Ε.Ε.)
* I.K.E. (Idiotiki kefaleouhiki Eteria / Ιδιωτική Κεφαλαιουχική Εταιρεία) = Private Company, minimum capital=€0. The shares do not take the form just of capital but also warranties, labor offer etc. This form is a composite form between A.E. E.P.E and O.E. which is greatly affected by the Articles of Incorporation.
* y Cía. S. C. (Sociedad Colectiva) * y Cía. S. en C. (Sociedad en Comandita Simple) * Cía. Ltda. (Sociedad de Responsabilidad Limitada) * S. A. (Sociedad Anónima) * Cía. S. C. A (Sociedad en Comandita por Acciones)
* Standardized Company; Legal Form, Sociedad Anónima (SA) – Stock Corporation; Minimum Capital Requirement, 25,000
* Ltd (Limited/有限公司): may denote either a private or public
company limited by shares, or a company limited by guarantee . Under
Companies Ordinance, the name of a
In Hungary, business entities are mainly regulated by the Companies Act of 2006, the Companies Registration Act of 2006 and the new Civil Code of 2013. All companies are required to indicate their type in their name.
NAME TYPE NOTES
e.v. (egyéni vállalkozó) sole trader must be a natural person
e.c. (egyéni cég) sole venture a company registered by and consisting of one sole trader
bt. (betéti társaság) limited partnership requires one general partner with unlimited liability and one or more members with limited liability
kkt. (közkereseti társaság) general partnership all members have unlimited liability
kft. (korlátolt felelősségű társaság)
limited liability company
company without stocks, the most common company type in
kht. (közhasznú társaság) community interest company abolished in 2009, must operate as nonprofit company instead
kv. (közös vállalat) joint venture abolished in 2006
rt. (részvénytársaság) joint-stock company replaced by Zrt. and Nyrt. in 2006
Nyrt. (nyilvánosan működő részvénytársaság) public limited company must be listed on a stock exchange
Zrt. (zártközűen működő részvénytársaság) privately held company not listed on stock exchange, otherwise the same as Nyrt.
szöv. (szövetkezet) cooperative
egyesülés interest grouping national version of European Economic Interest
Grouping / EEIG
NAME TYPE NOTES
* Minimum capital: ISK 500,000 (£2,750; €3,260; $4,250). * Minimum shareholders : 1.
einstaklingsfyrirtæki sole proprietorship
hf. hlutafélag ≈ plc (UK)
* Minimum capital: ISK 4,000,000 (£22,000; €26,100; $34,000). * Minimum shareholders : 2.
ohf. opinbert hlutafélag government-owned corporation
saf. samlagsfélag ≈ limited partnership
sv. samvinnufélag cooperative
sam. samsteypa conglomerate
sf. sameignarfélag ≈ general partnership
sfs. sjálfseignarstofnun non-profit organization
* Minimum capital: ISK 1,000,000 (£5,500; €6,520; $8,500).
Main article: Indian company law
* Sole Proprietorship - A sole proprietorship, also known as a trader firm or proprietorship, is a business firm that is owned and run by one individual. A sole proprietor may use a trade name or business name other than his or her name. Registration not required - In summary, biggest advantage is quick formation and low compliances. However, the biggest disadvantage is unlimited liability.
* Partnership - liability is joint and unlimited. Registration not compulsory.
* Active partners take part in day-to-day operations of the business, in addition to investing in it. Active partners are entitled to a share of the enterprise's profits. * Sleeping partners invest in the business and are entitled to a share of its profits, but do not participate in day-to-day operations.
* Limited Liability
Partnership - Liability is limited
* HUF (
* Yayasan: foundation * UD (Usaha Dagang): sole proprietorship * Fa (Firma): a partnership firm for the purpose of dealing with third parties. * Koperasi: a cooperative , where the clients/customers are also the owner * Maatschap (Persekutuan Perdata): a professional partnership, where the partners are treated as natural persons for tax and liability purposes e.g. Kantor Akuntan Publik Siddharta, Siddharta Командитное товарищество) * ОО (Obshestvennoe Obedinenie / Общественное объединение) Social association * PT/ПТ (Polnoe Tovarishchestvo / Полное товарищество) Full partnership * PtK/ПтК (Potrebibitelskii Kooperativ / Потребительский кооператив) * PrK/ПрК (Proizvodstvenni Kooperativ / Производственный кооператив) * РО (Relitioznoe Obedinenie / Религиозное объединение) * Uchr/Учр (Uchrezhdenie/Учреждение)
* 주식회사 or 株式會社 (jusik hoesa): ≈ plc (UK)
* 유한회사 or 有限會社 (yuhan hoesa): ≈
* SIA (Sabiedrība ar ierobežotu atbildību): ≈
* S.N.C.(Société en Nom Collectif): General partnership * S.C.S.(Société en Commandite Simple): Partnership in commendam
* UAB (Uždaroji akcinė bendrovė): ≈
* S.A. (Société anonyme): ≈ plc (UK)
* S.A.R.L. (Société à responsabilité limitée): ≈
* A.D./А.Д. (Akcionersko Društvo / Акционерско
друштво): ≈ plc (UK) or
* D.O.O./Д.О.О. (Društvo so Ograničena Odgovornost /
Друштво со ограничена одговорност): ≈
* Persona Física
* S.A. (
Sociedad Anónima ): ≈ plc (UK)
* S. de R.L.(Sociedad de Responsabilidad Limitada): ≈
Note: Any of these entities can be incorporated as a "Capital Variable" entity, in which case has to add the " de C.V." sufix to its company name. Example: "S.A. de C.V.", "S. de R.L. de C.V." Business entities according to the "Ley del Mercado de Valores" (Stock Market Law)
* ХК (Khuvitsaat Kompani/Хувьцаат Компани): ≈ joint stock company * ХХК (Khyazgaarlagdmal Khariutslagatai Kompani/ Хязгаарлагдмал Хариуцлагатай Компани): ≈ p.l.c (UK) limited liability company * ТББ (Töriin Bus Baiguullaga/Төрийн Бус Байгууллага):≈ non governmental organization
* Preduzetnik (Preduzetnik): ≈ Sole proprietorship (UK) ≈ Einzelunternehmen/Eingetragener Kaufmann (D) * O.D. (Ortačko Društvo): ≈ General partnership (UK) ≈ Offene Handelsgesellschaft ≈ OHG (D) * K.D. (Komanditno Društvo): ≈ Limited partnership (UK) ≈ KG (D) * A.D. (Akcionarsko Društvo): ≈ joint-stock company , plc (UK) ≈ AG (D) * D.O.O. (Društvo sa Ograničenom Odgovornošću): ≈ Private Limited Companies (Ltd.) (UK) ≈ GmbH (D)
* Dio stranog društva(Dio stranog društva):
* Literally part of a foreign company this sort of business entity contains the original name, legal organizational form from origin country which is converted in
one of above mentioned form (Preduzetnik; O.D.; K.D.; A.D.; D.O.O.), as such it is registered in the Central Register of Companies. This form is a little bit specific and was created for companies that are domiciled registered in other countries and have its part in Montenegro.
* S.A (Société Anonyme): ≈ Public Limited
* Close Corporation* * Companies (Private, Public and Section 21)* * Sole Trader* * Partnership* * Trusts* * Co-operatives*
* Private Limited Company: Liability, limited by shares; Name,
cannot be deceptively similar to another registered company;
Management, at least 1 director; Shareholders, limited to 1-50
excluding persons who are employed by company, prohibition against any
invitation to the public to subscribe for shares; Founders, 1-50;
Nationality, Nepalese company;
* Stichting: ≈ foundation . Can run a business. No profit distribution to founders or board members.
* mutual societies (associations which are allowed to pay dividends to their members; liability may be unlimited (W.A. - Wettelijke Aansprakelijkheid), limited (B.A. - Beperkte Aansprakelijkheid) or exempt (U.A. - Uitsluiting van Aansprakelijkheid)):
* Coöperatie: ≈ co-operative society * Onderlinge waarborgmaatschappij: ≈ mutual insurance company
* Mij (Maatschappij): ≈ association * Mts (Maatschap): ≈ group practice (of professionals, e.g. doctors, accountants, lawyers); share facilities not profits, members are treated as natural persons for tax and liability purposes. * Eenmanszaak: ≈ sole trader (UK), sole proprietorship (US)
* incorporated entities:
* vof (Vennootschap onder firma): ≈ GP
* cv (Commanditaire vennootschap): ≈ LP
* bv (Besloten vennootschap): ≈
* Ltd (Limited): ≈ plc or
The Commercial Code establishes the following types of companies:
* S.A.: Sociedad Anónima * Cia.: Sociedad en Nombre Colectivo * Cia. Ltda.: Sociedad en Nombre Colectivo de Responsabilidad Limitada * S.C.S.: Sociedad en Comandita Simple * S.C.A.: Sociedad en Comandita por Acciones
* Private Limited
* ASA (Allmennaksjeselskap): ≈ plc (UK). Minimum capital NOK
* AS (Aksjeselskap): ≈
* SAOG (Société Anonyme Omanaise Générale) Public Joint Stock
There are three main forms of business:
* Sole Proprietorship
In a sole proprietorship, an individual on his/her own account carries out the business or profession. No formal procedure or formality is required for setting up a sole proprietary concern.
A partnership is a business relationship entered into by a formal agreement between two or more persons or corporations carrying on a business in common. The capital for a partnership is provided by the partners who are liable for the total debts of the firms and who share the profits and losses of the business concern according to the terms of the partnership agreement.
Partnerships (other than banking companies) are generally limited in size to twenty partners. The interest of a partner is transferable only with the prior consent of the other partner(s). However, a partner's right to a share of the partnership income may be received in trust for another person.
For taxation purposes, partnerships are classified into:
(i) Registered Firms (ii) Unregistered Firms
The income of the registered firm is subject to Super Tax before distribution to the partners. Also the individual income of the partners is subject to income tax at the usual rates.
For unregistered firms, income tax is levied on the firm's income and the partners are not liable to pay tax on the shares of profit received from the unregistered firm(s).
A company is a legal entity formed under the Companies Ordinance, 1984. It can have share capital or can be formed without share capital.
A company having share capital may be formed as:
(i) A company limited by shares. (ii) A company limited by guarantee. (iii) An unlimited company.
The liability of its members is limited to the extent of their shares in the paid-up capital of the company. These companies may further be classified as public limited and private limited companies.
* Public Limited Companies can be formed by at least seven persons by subscribing their names to the 'Memorandum and Articles of Association' of the company. The word 'Limited' is used as the last word of its name. * Private Limited Companies may be formed by at least two persons by subscribing their names to the 'Memorandum and Articles of Association' of the company. A private limited company, by its Articles of Association:
(i) Restricts the right to transfer its shares; (ii) Limits the number of its members to fifty; and; (iii) Prohibits any invitation to the public to subscribe for shares or debentures of the company.
A private limited company is required to use the words "(Private) Limited" as the last words of its name.
Means a company having the liability of its members limited by
memorandum to such amounts as the members may respectively undertake
to contribute to the capital of the company in the event of its
winding up. A company limited by guarantee is usually formed on a 'non
Companies limited by guarantee use the words
(Guarantee) Limited" as the last words of their n Unlimited
Means a company having unlimited liability of its members
* S.A. (Sociedad Anónima): ≈ plc (UK)
Sociedad Anónima Abierta (S.A.A.): To qualify to register as an
S.A.A., a company must meet one or more conditions laid down in
Article 249 of Peru's General
* Co. (Company): can be used for general partnerships
* Coop. (Cooperative)
* Corp. (Corporation)
* Ent. (Enterprise)
* Inc. (Incorporated)
* LLC (Limited Liability Company)
Older forms (now rarely used)
* Cía (Compañía): for partnerships and other forms of business during the Spanish rule * SA (Sociedad Anónima): formed under Spanish rule
* jednoosobowa działalność gospodarcza: sole proprietorship
* Przedsiębiorstwo Państwowe: state enterprise (has legal
* S.A. (spółka akcyjna): ≈ plc (UK). Minimum share capital PLN
100,000 (approx. €25,000) (has legal personality ).
* s.c. (spółka cywilna): "civil partnership", not a partnership or
a company, but rather an agreement on the sharing of profits, losses
and ownership of a business. Can be likened to a voluntary association
* S.K.A. (spółka komandytowo-akcyjna): limited partnership with
shares. Minimum share capital PLN 50,000 (approx. €12,500).
* sp.j. (spółka jawna): ≈ general partnership
* sp.k. (spółka komandytowa): ≈ limited partnership
* sp.p. (spółka partnerska): ≈ limited liability partnership May
also be denoted by the addition of i partner(zy) ("and partner(s)") to
the firm's name. Can only be used for the purpose of practicing as a
licensed professional listed in the appropriate provision of the
Companies Code. The partners are fully liable for the
partnership's debts, with the exception of debts incurred by other
partners practicing their licensed profession and employees under
* Sp. z o.o. (spółka z ograniczoną odpowiedzialnością): ≈
References: (Polish) Commercial Companies Code of 15 September 2000 (Dz.U. No 94 item 1037 as amended); (Polish) Civil Code of 23 April 1964 (Dz.U. No 16 item 93 as amended); (Polish) Law on Cooperatives of 16 September 1982 (Dz.U. 2003 No 188 item 1848 as amended)
* CRL (Cooperativa de Responsabilidade Limitada): limited liability cooperative
* S.A. (Sociedade Anónima): ≈ plc (UK), and these are further classified as:
* S.A., Sociedade Aberta: ≈ publicly traded corporation (literally "open company"). * S.F., Sociedade Fechada: ≈ privately held (closely held) corporation (literally "closed company")
* Lda. (Limitada): ≈
* Unipessoal Lda.: single member company (literally: "Unipersonal Ltd.")
* SGPS (Sociedade Gestora de Participações Sociais): holding corporation (literally "shareholding management company")
SOCIETățI COMERCIALE, ABBREVIATED SC (COMPANIES):
* SOCIETățI DE PERSOANE (UNINCORPORATED COMPANIES, ALSO CALLED PARTNERSHIPS)
* Societatea în nume colectiv, abbreviated SNC (General Partnership, abbreviated GP) * Societatea în comandită simplă, abbreviated SCS (Limited Partnership, abbreviated LP)
* SOCIETățI DE CAPITALURI (INCORPORATED COMPANIES, ALSO CALLED CORPORATIONS)
* Societatea în comandită pe acțiuni, abbreviated SCA (Company Limited by Shares) * Societatea pe acțiuni, abbreviated SA (Joint-Stock Company)
* SOCIETățI HIBRIDE (HYBRID COMPANIES)
* Societatea cu răspundere limitată, abbreviated SRL (Limited Liability Company) * Societatea cu răspundere limitată cu proprietar unic, abbreviated SRL cu proprietar unic
* S.A. (Societate pe Acţiuni): ≈ plc (UK) * S.C.A. (societate în comandită pe acţiuni): limited partnership with shares * S.C.S. (societate în comandită simplă): ≈ limited partnership
* S.N.C. (societate în nume colectiv): ≈ general partnership
* S.R.L. (societate cu răspundere limitată): ≈
limited liability company "societate cu raspundere limitata" (SRL); joint stock company "societate pe actiuni" (SA);
* Nekommercheskaya organizatsiya/некоммерческая организация: non-profit organization (there are many types of non-profits in Russia; the type depends on the ownership of the assets (non-state pension fund/Негосударственный пенсионный фонд, for example)) * GP/ГП, GUP/ГУП (Gosudarstvennoye unitarnoye predpriyatie/Государственное унитарное предприятие): state (unitary) enterprise * IP/ИП (Individualny predprinimatel/Индивидуальный предприниматель): sole proprietorship * OOO (Obshchestvo s ogranichennoy otvetstvennostyu/Общество с ограниченной ответственностью): LLC (US) * ПAO (Publichnoye aktsionernoye obshchestvo/Публичное акционерное общество): plc (UK), publicly traded shares (similar to a corporation in the US) * kooperativ/кооператив: cooperative (many types, which differ by the type of activity, e.g. agricultural or production) * АО (Aktsionernoye obshchestvo/Акционерное общество): ltd (UK), privately held shares (similar to a close corporation, or closely held corporation, in the US) (maximum fifty "owners of capital" (not shareholders). If there are more than fifty "owners of capital", they have a year to transform into a "ПAO") * Prostoye Tovarishestvo (general partnership) and Kommanditnoe Tovarishestvo (limited partnership). These types of business entities are not popular (approximately 0.5% of the total number of business entities). * Hozyaystvennoe Partnerstvo (business partnership) is a "secret" entity. There is no equivalent in other jurisdictions.
* Private Limited
* j.p. / ј.п. javno preduzeće / јавно предузеће):
≈ state-owned enterprise
* a.d. / a.д. (akcionarsko društvo / aкционарско
друштво): ≈ joint-stock company , plc (UK) ≈ AG (Germany)
* d.o.o. / д.о.о. (društvo sa ograničenom odgovornošću /
друштво сa ограниченом одговорношћу):
≈ it is similar with
Limited liability partnership with some
specifics and further similarities with
LLP (limited liability partnership ): owners have the flexibility
of operating as a partnership while enjoying limited liability. An LLP
can sue and be sued, acquire and hold property, and have a common
* Pte Ltd/Sdn Bhd (private limited company/Sendirian Berhad): ≈
* a.s. (Akciová spoločnosť): ≈ plc (UK). Minimum share capital
EUR €25,000. Must have a supervisory board in addition to the
* s.r.o., spol. s r.o. (Spoločnosť s ručením obmedzeným): ≈
* d.d. (Delniška družba): ≈ plc (UK)
* d.o.o. (Družba z omejeno odgovornostjo): ≈
* Sole proprietorship/Alleeneienaar
* Incorporated association not for gain/vereniging sonder winsoogmerk (section 21 company/artikel 21-maatskappy): ≈ nonprofit association .
* Companies having a share capital
* Private company/privaat maatskappy: ≈ private limited company (UK), limited liability company (US); has 1 or more shareholders , one or more directors. The name must end "(Pty) Ltd"; registration number ends /07. Registration number and directors' names must appear on all correspondence.
* Section 53(b) company (unlimited liability company): ≈ professional limited liability company (PLLC) (US)
* Public company/publieke maatskappy: ≈ public limited company (UK), corporation (US); has at least 7 shareholders (unless it is a wholly owned subsidiary of another company) and at least two directors . The company's name must end in "LTD"; its registration number ends in /06.
* CC/BK (Close corporation/beslote korporasie): Has 1–10 non-corporate members. The name must end "CC" or "BK"; registration number ends /23. Registration number and members' names must appear on all correspondence. On 1 May 2011 the new Companies Act (Act 71 of 2008) came into force and disallows any new incorporations under this form.
* S.A. (Sociedad Anónima): ≈ plc (UK), minimum capital
* S.L. (Sociedad Limitada ): ≈
* S.Coop. (Sociedad Cooperativa): a cooperative that typically is owned and democratically controlled by its workers
* Other initialisations are used for cooperatives; Sociedad Anónima Laboral (SAL); some are region specific e.g. Sociedad Cooperativa Catalana Limitada (SCCL)
* Ek. för. (Ekonomisk förening): economic association (minimum three members)
* Bostadsrättsförening: home-owners' association * Hyresrättsförening: home-renters' association * Kooperativ: cooperative
* Enskild firma: sole proprietorship * HB (Handelsbolag): ≈ general partnership * KB (Kommanditbolag): ≈ limited partnership * Enkelt bolag: Regulated partnership between two parts (Companies or private persons) * Ideell förening: non-profit organization * Stiftelse: Foundation has capital or property but no members or owners (shareholders) * Filial
AG (Aktiengesellschaft) SA (Société anonyme) SA (Società anonima) ≈ plc (UK) or Inc. (US). Min. share capital CHF 100,000. Bearer or registered shares, of a par value of min. CHF 0.01 each. Details of shareholders generally not publicly available (except for main shareholders and management shares of publicly listed companies).
GmbH (Gesellschaft mit beschränkter Haftung)
* Stiftung / fondation / fondazione:≈ foundation
* investment fund (Anlagefonds / fonds de placement / fondo di investimento)
* Investmentgesellschaft mit festem Kapital / SICAF (société d'investissement à capital fixe) / SICAF (società di investimento a capitale fisso):≈ investment trust (UK), closed-end company (US) * Investmentgesellschaft mit variablem Kapital / SICAV (société d'investissement à capital variable) / SICAV (società di investimento a capitale variabile):≈ OEIC (open-ended investment company ) (UK), open-end company (US)
* Verein / association / associazione:≈ non-profit association * wIG (wirtschaftliche Interessengemeinschaft) / GIE (groupement d'intérêt économique) / gruppo di interesse economico:≈ EIG (economic interest grouping) * Einzelunternehmen / RI (raison individuelle) / ditta individuale:≈ sole trader (UK), sole proprietorship (US)
* Gesellschaft "business entities"
* partnerships (Rechsgemeinschaft / société de personnes / società di persone)
* eG (einfache Gesellschaft) / société simple / società semplice:≈ partnership by contract * KolG (Kollektivgesellschaft) / SNC (société en nom collectif) / società in nome collettivo:≈ GP * KG (Kommanditgesellschaft) / SC (société en commandite) / società in accomandita:≈ LP
* trading companies (Körperschaft / société de capitaux / società di capitale)
* KomAG (Kommanditaktiengesellschaft) / SCA (société en commandite
par actions) / società in accomandita per azioni:≈ publicly traded
GmbH (Gesellschaft mit beschränkter Haftung) /
* Genossenschaft / Scoop (société coopérative) / società cooperativa:≈ co-operative * Zweigniederlassung / succursale / succursale:≈ branch (of a company)
* 無限公司 (Unlimited Company)
* 有限公司 (Limited Company)
* 兩合公司 (Limited Partnership)
* 股份有限公司 (Public Limited
* บริษัทมหาชนจำกัด, name format
บริษัท corporation name จำกัด (มหาชน):
plc (UK). Minimum 15 shareholders .
* บริษัทเอกชนจำกัด (name format
บริษัท corporation name จำกัด):
According to Code of Obligations (fifth book of Civil Code) (Act No: 6098)
* Adi Şirket : ≈ Simple Partnership (has no legal personality)
According to the Commercial Code (Act No: 6102)
Şahıs şirketleri ≈ Partnerships (Unlike the partnerships in Anglo-American law, they also have legal personality like companies)
* Koll. Şti. (Kolektif şirket): ≈ Collective partnership * Kom. Şti (Komandit şirket) ≈ Commandite partnership Can be established as simple commandite partnership or as commandite company divided into shares (Sermayesi paylara bölünmüş komandit şirket).
Sermaye şirketleri ≈ Companies
* A.Ş. / A.O. (Anonim Şirket / Anonim Ortaklık): ≈ Joint stock
company Minimum capital is TRY 50.000. Bearer or registered shares, of
a minimum par value of TRY 0,01 each. Only type of company that can be
publicly traded in Turkish Law.
According to the Capital Markets Act (Act No: 6362)
* HAAO (Halka Açık Anonim Ortaklık) ≈ Publicly held corporation This essentially is a special type of A.O. These type of companies can only be established as A.O.'s. When there are no specific rules under Capital Markets legislation, A.O. rules under Turkish Commercial Code will be applied to HAAO's.
According to the Cooperatives Act (Act No: 1136)
* Koop. (Kooperatif Şirket) ≈
* شركة فردية (Entreprise individuelle) * شّركة ذات مسؤوليّات محدودة ش.م.م.(Société à responsabilité limitée- SARL) * شّركة فردية ذات مسؤوليّات محدودة (Société unipersonnelle à responsabilité limitée SUARL) * شركة خفية الإسم (Société anonyme - SA) * الشركات ذات رأس المال المتغيّر
* DAT/ДАТ (Державне акціонерне
товариство Derzhavne Aktsionerne Tovarystvo): ≈ plc (UK),
* FOP/ФОП (фізична особа підприємець F O
P): sole proprietorship
* KT (Командитне товариство Comandytne
Tovarystvo): ≈ limited partnership
* PT/ПT (Повне товариство Povne Tovarystvo): ≈
* TDV/ТДВ (Товариство з додатковою
відповідальністю Tovarystvo z Dodatkvoiu
Vidpovidalnistiu): "additional liability company"
* TOV/TOB (Товариство з обмеженою
відповідальністю Tovarystvo z Obmezhenoiu
* CIC or community interest company
* CIO or
Charitable Incorporated Organisation
Industrial and provident society , e.g. a co-operative (which does
* PRIVATE LIMITED COMPANIES - Ltd or Limited or Cyf (Welsh Cyfyngedig)
* PRIVATE COMPANY LIMITED BY SHARES , The liability is limited to the amount, if any, unpaid on the shares held by them. Its shares cannot be traded publicly. * PRIVATE COMPANY LIMITED BY GUARANTEE .The liability is limited to such amount as the members undertake to contribute to the assets of the company in the event of its being wound up.
* PUBLIC LIMITED COMPANIES - PLC or Ccc (Welsh Cwmni Cyfyngedig Cyhoeddus)
* PUBLIC LIMITED COMPANY : Is a limited company whose shares may be traded publicly. Requires an authorized minimum share capital of £50,000; of which it must have allotted shares to the value of at least £50,000 and a minimum of 25% must be fully paid up prior to starting business.
* UNLIMITED COMPANY (or Welsh Anghyfyngedig). There is no limit on the liability of its members. It is not a requirement under company law to add or state the word or designation Unlimited or its abbreviations (Unltd., or Ultd.) at the ending of its legal company name, and most unlimited companies do not. Unlimited companies are exempted from filing accounts with the Registrar of Companies for public disclosure, subject to a few exceptions (unless the company was a qualified subsidiary or a parent of a limited company during the accounting period).
* SOLE PROPRIETORSHIP (Sole traders)
In the United States, the individual states incorporate most businesses. Very few special types are incorporated by the federal government.
For federal tax purposes, the
Internal Revenue Service
The key word for a bank is "national". A bank chartered by the Office of the Comptroller of the Currency (OCC) must have the word "national" in its name. A bank chartered by a state cannot have "national" in its name.
For a savings bank (formerly called a savings and loan association) or credit union, the key word is "federal", and the same rules apply; a federally chartered savings bank or credit union must have the word "federal" in its name, while a state chartered savings bank or credit union cannot have "federal" in its name.
* FSB (Federal Savings Bank ), formerly called federal savings and loan association * NA (National Association ), a designation used by banks chartered by the Office of the Comptroller of the Currency (OCC) * NT lawyers, legal advice; and accountants, accounting services; architects, architectural services; when the company formed offers the services of the professionals. Instead those states allow a PLLC or in the LLC statutes, the liability limitation only applies to the business side, such as creditors of the company, as opposed to the client/customer service side, the level of medical care, legal services, or accounting provided to clients. This is meant to maintain the higher ethical standards that these professionals have committed themselves to by becoming licensed in their profession and to prevent them from being immune (or at least limit their immunity) to malpractice suits.
* Corp. , Inc. , CORPORATION, INCORPORATED: used to denote
corporations (public or otherwise). These are the only terms
universally accepted by all 51 corporation chartering jurisdictions in
the United States. However, in some states other suffixes may be used
to identify a corporation, such as Ltd., Co./Company, or the Italian
term S.p.A. (in
District of Columbia
Georgia 'corporation,' 'incorporated,' 'company,' or 'limited,' or the abbreviation 'corp.,' 'inc.,' 'co.,' or 'ltd.,' or words or abbreviations of like import in another language; must not be longer than 80 characters O.C.G.A. § 14-2-401
Chapter 351 Section 351.110
New Hampshire Contain the word "corporation", "incorporated", or "limited" or the abbreviation "corp." ""inc.", or "ltd." New Hampshire Revised Statutes TITLE XXVII; Section 293-A:4.01 for business corporations
Shall contain the word "corporation", "incorporated" or "limited",
or an abbreviation of one of such words; there is also a long list of
words a business corporation is not allowed to use without additional
approval from other agencies including "board of trade", "state
police", "urban development", "chamber of commerce", "state trooper",
"urban relocation", "community renewal", "tenant relocation",
"acceptance", "endowment", "loan", "annuity", "fidelity", "mortgage",
"assurance", "finance", "savings" and many others
New York State Consolidated Laws,
North Dakota must contain the word "company", "corporation", "incorporated", "limited", or an abbreviation of one or more of these words; may not contain the words "limited liability company", "limited partnership", "limited liability partnership", "limited liability limited partnership", or any abbreviation of these words. North Dakota century Code 10-19.1-13
U.S. Virgin Islands
Washington "corporation", "incorporated", "company", or "limited", or the abbreviation "corp.", "inc.", "co.", or "ltd."; must not include "Bank", "banking", "banker", "trust", "cooperative", or any combination of the words "industrial" and "loan", or any combination of any two or more of the words "building", "savings", "loan", "home", "association", and "society", § 23B.04.010 Revised Code of Washington
* MChJ (Mas'uliyati Cheklangan Jamiyat/Масъулияти Чекланган Жамият): limited liability company * QMJ (Qo'shimcha ma'suliyatli jamiyat/Қўшимча масъулиятли жамият): additional liability company
* AJ (Aksiyadorlik jamiyati/Акциядорлик жамияти): joint-stock company
* OAJ (Ochiq aksiyadorlik jamiyati/Очиқ акциядорлик жамияти): public joint-stock company * YoAJ (Yopiq aksiyadorlik jamiyati/Ёпиқ акциядорлик жамияти): closed joint-stock company
* XK (Xususiy korxona/Хусусий корхона): private company * XT (Xususiy tadbirkorlik/Хусусий тадбиркорлик): sole proprietorship * OK (Oilaviy korxona/Оилавий корхона): family company * UK (Unitar korxona/Унитар корхона): unitary enterprise * QK (Qo'shma korxona/Қўшма корхона): joint venture
* Cty TNHH (Công ty trách nhiệm hữu hạn / "
* ^ "Choose a legal structure for a new business".