Business Structures: Classification and Legal Forms
Business Classification
Staff Numbers
- Micro
- Small
- Medium
- Large
Activity
- Commercial products
- Services
Scope
- National
- Multinational
Ownership and Sector
Depending on the economic sector and the ownership of productive factors:
- Private
- Public
- Mixed
The Company and Its Legal Form
Individual Enterprise
The owner is a natural person entitled to act, who owns the assets and assumes all responsibility.
Characteristics:
- Realization of economic activity.
- Development of a regular and professional activity.
- Carrying out an activity in its own name.
Partnerships (The Company and Society)
General Partnership (Partnership)
The personal qualities of its main partners are fundamental to the constitution of the company. All partners respond unlimitedly, meaning they provide the capital stipulated for the debts and are liable in solidarity with their own assets, even those not contributed to the company. The corporate signature must be formed under the name of all partners.
Simple Partnership (Partnership-Simple)
Minimum defined by the existence of two types of partners:
- Partnership-Groups: Have the same function as collective partners and can manage and make decisions; their liability is unlimited.
- Partners providing capital: Only provide necessary capital; their liability is limited to the money paid.
The signature must be formed under the name of all partners.
Stock Partnership (Partnership-Stock)
The only difference from the previous two is that their capitals are divided by shares, and responsibilities are identical to the previous ones.
Limited Liability Companies
Consisting of a maximum of 50 partners and a minimum capital of 3,005 euros. This capital is divided into equal, indivisible shares, but they are not called or may not materialize in any paper investment.
Responsibility of its members is limited by the amount of capital contributed.
Organs:
- Required: General Meeting and Administrators.
- Optional: Audit bodies and Supervisory Board.
Corporations
Have a capitalist character, as only providing money allows one to be a partner. The minimum capital to form it is about sixty thousand euros. It is divided into shares or proportional parts that are equal, cumulative, and indivisible. Requires three people.
The law imposes requirements on the two bodies of an Anonymous Society:
- The General Meeting and the Board or Executive Body.
- Auditors (compulsory).
One of the most important characteristics of these societies is that constitution can be performed successively or simultaneously.
Industrial Societies
A company is classified as labor if at least 51% of its capital must be contributed by employees with an indefinite contract.
Requirements:
- Submission of an economic feasibility study of the company.
- Inscription in a special register existing in the Ministry of Social Affairs and Labor.