Types of Companies

  1. Private Company Limited by Shares (LTD Company)

    — A private limited liability company.
    • Key characteristics: Shareholders are only responsible for the amount they invested in shares.
    • Best for: Suitable for small and medium-sized businesses where shareholders want to protect their personal assets from business risks.

  2. Designated Activity Company (DAC)

    — A company with designated activity.
    • Key characteristics: The company can only engage in activities specified in its governing documents.
    • Best for: Often used by companies that need to limit their scope of activity, such as financial institutions or charitable organizations.

  3. Companies Limited By Guarantee (CLG)

    — Companies limited by guarantee.
    • Key characteristics: Members agree to contribute a specified amount in case of liquidation, but they do not hold shares.
    • Best for: Suitable for non-profit organizations, sports clubs, charitable foundations, and associations.

  4. Public Limited Companies (PLC)

    — Public limited companies.
    • Key characteristics: Shares of the company can be bought and sold on the stock market. A significant amount of capital is required to start.
    • Best for: Ideal for large enterprises looking to raise capital through public stock offerings.

  5. Unlimited Companies

    — Companies with unlimited liability.
    • Key characteristics: Shareholders are fully responsible for the company’s debts, even with their personal assets.
    • Best for: Often used by companies where shareholders have high confidence in the business and are willing to accept full responsibility.

  6. Investment Companies

    — Investment companies.
    • Key characteristics: Companies that specialize in asset management and investments.
    • Best for: Suitable for financial organizations that manage funds, stocks, and other investment products.

  7. Societas Europaea (SE)

    — European companies.
    • Key characteristics: A form of public company recognized under European Union law. An SE can be registered in any EU country and operate across the EU.
    • Best for: Convenient for multinational companies that want to simplify business operations within the EU.

  8. Sole Trader

    — Individual Entrepreneur.
    • Key characteristics: One person owns and runs the business, and personal assets are not separated from business assets.
    • Best for: Suitable for small businesses where the owner wants to manage all aspects of the business themselves.

  9. Partnership

    — Partnership.
    • Key characteristics: A business owned by two or more people who share responsibility for running the business. Partners may have unlimited liability.
    • Best for: Suitable for small and medium-sized businesses where multiple owners want to manage the business together.

Choosing the right type of company depends on your goals, the size of your business, and the level of responsibility owners are willing to take.