Types of Companies

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A company is an economic production entity that is dedicated to combining capital, labor and natural resources in order to produce goods and services to sell on the market.

Companies can be classified in different ways according to legal form, size, activity and origin of capital, among others.

Types of companies according to their legal form

  • Sole proprietorship . Are companies that belong to a single individual. He is the one who must respond unlimitedly with his patrimony in front of those individuals harmed by the actions of the company.
  • Collective Society . Are companies owned by more than one person. In these, its partners respond in an unlimited way with their assets.
  • Cooperatives . Are companies that seek to obtain benefits for their members and aren't for profit. These can be made up of producers, workers or consumers.
  • Limited . Are companies with two types of partners: on the one hand, there are collective partners who participate in the management of the company and have unlimited liability. On the other, the limited partners, who don't participate in the management and their responsibility is limited to the capital contributed.
  • Limited Liability Company . Are companies where the partners only respond with the capital they contributed to the company and not with the staff.
  • Joint-Stock . Are companies that have limited liability to the contributed assets and their owners are those who participate in the capital stock through shares or titles.

Types of companies according to their size

  • Micro-companies . Are companies that have up to 10 workers and are generally individually owned, their owner usually works in it and their turnover is rather low. They don't have a great impact on the market, they have few equipment and the manufacture is almost artisanal.
  • Small companies . Are companies that have between 11 and 49 workers, their objective is to be profitable and independent, they don't have a high specialization in work, their activity isn't capital intensive and their financial resources are limited.
  • Medium Companies . Are companies that have between 50 and 250 workers, usually have areas whose functions and responsibilities are delimited, commonly, they have a union.
  • Large companies . Are companies that have more than 250 workers, generally have their own facilities, their sales are very high and their workers are unionized. In addition, these companies have the possibility of accessing important loans and credits.

Types of companies according to the activity

  • Primary sector companies . Are companies that, to carry out their activities, use some basic element extracted from nature, be it water, minerals, oil, etc.
  • Secondary sector companies . Are companies that characterized by transforming the raw material through some procedure.
  • Companies in the tertiary sector . Are companies in which the human capacity to do physical and intellectual tasks are its main element.

Types of companies according to the origin of the capital

  • Public companies . Are companies in which the capital comes from the State, whether municipal, provincial or national.
  • Private companies . Are companies that the capital comes from individuals.
  • Joint ventures . Are companies that the capital comes from both individuals and the State.

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