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Types of companies - you should know these 10 most important ones!
Katharina Rösner
When setting up, you can choose between various types of companies choose. The legal form of your company can also change as your company grows. We give you an overview of the most important types of companies.
One distinguishes corporations, partnerships and sole proprietorship. Which one for your Establishment most appropriate is, depends on the costs of setting up and stewardship as well as after the taxing. In addition, the legal liability and management has a role. Corporations and partnerships are divided into various forms. It is advisable to check over time whether the legal form still fits the company structure. You may then have to adjust them.
You can set up a sole proprietorship as an individual person. For example as Small business owner:r and Freelancer. You don't have to go to commercial register Register because that way you are not one of the real merchants. Therefore, you are subject to the rules of Civil Code. If you register voluntarily, the same legal and tax regulations apply to you as to merchants. One disadvantage of setting up a sole proprietorship is that you are personally liable for the trade or company with all your assets.
From the Small business regulation Can you make use of it if your annual turnover was not higher than 22,000 euros last year and will not be higher than 600,000 euros in the following year.
If the company requires commercial management, you can also be a businessman or businesswoman as a sole proprietor. For example, if the business assets amount to 100,000 euros per year or the Turnover exceed a certain amount. With services Is the limit at 175,000 euros and in production at 300,000 euros. If you have up to five employees, that does not speak for a commercial regulation. If you have taken out a loan of up to 50,000 euros, small business is also sufficient.
Liberal professions are precisely defined by law. This includes doctors, tax advisors, lawyers, journalists, educational occupations and artistic professions, but also physiotherapy professionals or midwives, for example. Since they are not always so easy to distinguish from industry, there is a catalog in which these 'Catalogue occupations'are listed.
By the way, the terms' freelancer 'and' freelancer 'are not synonyms. freelancers Refers to the type of activity while Freelancer describes the type of employment as freelancers.
If you do not want to be liable for the business with your private assets, you can also one-person GmbH establish. Then, as a legal entity, you are not liable with your private assets, but with the deposit. However, as with the GmbH, the share capital also amounts to 25,000 euros. An alternative can therefore also be entrepreneurial company (UG) be. For this, you need a starting capital of one euro.
If you are not setting up alone, but together with one or more freelancers, it is also possible to join a partner company or a Civil Law Society (GbR) to join forces. Other options include merging with Partner company or to open trading company.
As a freelancer, you don't have to register a business, just register with the tax office. If you found a GmbH, UG, PartG or partnerships, you must do so from one or a Notary certify leave. Starting up will therefore cost you more.
Trade includes industrial and craft occupations and commercial occupations. A small businesses Can you register if you are not considered a businessman or wife. You do not need any start-up capital for a business and the establishment does not have to be notarized. Registration is made with the trade office and the tax office.
Partnerships and corporations fall under the Commercial Code. In contrast to corporations, partnerships are not legal entities. The usual forms are GbR, OHG and KG.
The civil law company, GbR, can also be an association of freelancers and small businesses. It serves a specific entrepreneurial goal that needs to be promoted. As a partner, you are directly and fully liable, including your private assets. This also applies five years after you have left the company.
The open trading company, OHG, is intended for commercial industries and companies. You do not need a minimum capital when setting up a company. You can set it up with at least one second partner. As such or such, you are directly and without limitation liable with your own assets.
The limited partnership, KG, consists of at least one Complementary, who is fully liable, and a limited partners, which is only liable with its insert. As a limited partner, you are excluded from management, but you have the right to object to unusual company decisions. As a limited partner, you receive interest on your deposit from the income. As a complementary partner, you are liable with your assets. Family businesses often choose limited partnerships from among the types of companies. You do not need a share capital when setting up a company.
To the corporations Do they belong AG, UG, ltd And the KGaA. They are always legal entities that focus on capital.
The limited liability company, GmbH, is a fairly popular legal form because it limited liability is. This means that as a partner, you are only liable for the investment you have made. that Minimum capital When founded, it amounts to 25,000 euros, which can also be invested in the equipment.
The entrepreneurial company (UG) has existed since 2008 and is also known as Mini-GmbH. It is “mini” because the minimum capital is one euro. If requirements change, it can be restructured into a limited liability company at a later date.
For the public limited company (AG), this is Minimum capital when founded at 50,000 euros. Therefore, it is usually not a suitable legal form at the start of self-employment. AGs have management that represents them and a board of directors who oversee business processes. The assets are invested in shares. The company is liable to its creditors with the company's assets.
To a Partner company (PartG) Can you connect with one or more others Bring freelancers together. It is therefore comparable with the OHG. You must have the company entered in the partnership register and have “Partner” in the name. Only the respective partner is liable for errors, but without limitation.
SE stands for Societas Europaea and is the counterpart to joint-stock company. The company location must be in a member state of the eEuropean Union be. The goal is unitary Management in all EU countries. However, the starting capital is 120,000 euros.
Mixed forms contain characteristics of partnerships and corporations in order to combine the respective advantages.
Die GmbH & Co. KG Belongs to partnershipsEven though they have many Elements of a capital company united in itself. The general partner is a GmbH, i.e. a legal entity. The latter is therefore the unlimited liability partner of the KG. As a GmbH, however, it has limited liability. The result is therefore a limited liability partnership.
Many family businesses choose GmbH and Co. KG from the types of companies because liability is limited to investment in assets. The prerequisite for you to found a GmbH & Co. KG is that the GmbH already exists. Since it is a hybrid of two companies, two annual financial statements must also be prepared. This gives you additional administrative work.
Another hybrid form is KGaA, the limited partnership on shares. The shareholder is a legal entity and the starting capital is 50,000 euros. The personal connection between shareholders and the company is advantageous. As limited partner You have unlimited liability and hold the capital, which is supplemented by shares. Due to the high start-up capital, it is usually not suitable for founding a company.
There are various reasons for choosing one of the types of company. In order to make the right choice, you should check in advance from one or a Tax advisor And one or one Get advice from a lawyer. Even with the Establishment of a (regional) food retailer or delivery service Do you have the choice between different types of companies.
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