Many of you may have seen various types of business operations. Some people operate their businesses alone—setting up, selling product, managing while some operate limited companies or limited partnerships. Notwithstanding that these types of business are different, they share the same purpose: making profit.
There are 2 main types of business which are “Non-juristic person” and “Juristic person”.
Non-Juristic Person
1. Business with individual owner
This type of business is usually a small business. It is simple to form and operate, and may enjoy greater flexibility of management for one individual. The business owner is personally liable for all profits and debts incurred by the business.
2. Ordinary partnership
This type of business is set up and operated by 2 or more persons. Partnership profits and debts are shared among partners.If the ordinary partnership is not registered, it is considered as a non-juristic person business type. In general, it is not obligatory that this type of business has to be registered.
3. Group of person
Two or more persons agree to unite for a common undertaking but not as an ordinary partnership.
Juristic Person
1. Partnership is a business formed by the agreement between 2 or more persons whereby the profits and losses is not always divided among the partners equally but based on their agreement. There are 2 types of partnership:
Ordinary partnership is that kind of partnership in which all the partners are jointly and unlimitedly liable for all the obligations of the partnership. The ordinary partnership may be registered which is called “Registered ordinary partnership”
Limited partnership is that kind of partnership in which there are 2 types of partners: limited liability and unlimited liability.
2. Limited company is formed by 3 or more persons with a capital divided into equal shares, called “shareholders”. There are 2 types of limited company:
Private company limited
Public company limited
If you think about starting a new business, search for more information and analyze your need as well as your ability so that you can set up the right type of business as each type has its own advantages and disadvantages.
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