Nature and types of companies

What is the nature of a company? The types of business nature define what kinds of business there are. You see, there are basically three types of business nature – sole proprietorship , partnership , and companies.

Getting to know these three will be able to help anyone who is looking to start a business as they will be able to enlighten them about the different factors that are important for the startup business that you are establishing. A company as an entity has several distinct features, which together make it a unique organization.

The following are the defining characteristics of a company: – 1. Separate Legal Entity. Companies Limited By Shares. On incorporation under law, a company becomes a separate legal entity as compared to its members. The company is different and distinct from its members in law.

On the basis of members. The powers and the nature of business of a chartered company are defined by the charter which incorporates it. After the country attained independence, these types of companies do not exist in India.

A company can be a “ corporation , partnership , association , joint-stock company , trust , fund , or organized group of persons, whether incorporated or not, and (in an official capacity) any receiver, trustee in bankruptcy, or similar official, or liquidating agent, for any of the foregoing”. Private limited companies are one of the most common types of companies. MEANING, CHARACTERISTICS AND TYPES OF A COMPANY STRUCTURE 1. Self Assessment Questions 1. Suggested Readings 1. OBJECTIVE After reading this lesson, you should be.

Most corporations by letters patent are corporations sole and not companies as the term is commonly understood today. Charter corporations. Before the passing of modern companies legislation, these were the only types of companies. Thus, a business can be broadly classified as into the following types : Service : An activity performed to earn money through customer satisfaction is known as a service.

It involves professional skills and expertise. The franchisor sells the right to use their business model to the franchisee, who pays an ongoing fee. Limited by Guarantee companies are, quite simply, not for profit companies. Any profits generated are reinvested into the company and are used to achieve the objectives of the company which are often charitable in nature.

The members of this type of company are classed as decision makers rather than owners of the company. Sole trader – the oldest form of trading there is, it’s also the simplest and the most common type of business you’ll find. Browse more Topics under Business Services.

The first type of service is business services. There are basically three types of classification of services. Choosing a type of organizational structure is important to a company ’s management. It’s therefore crucial that business owners pick the right organizational type to help operations run more smoothly.

Corporation: A type of fully-independent business with shareholders. One of the most complex business types. We incorporate and dissolve limited companies.

We register company information and make it available to the public.