Types of companies according to the origin of capital
Posted: Tue Jan 07, 2025 8:36 am
This classification considers the origin of the funds with which the organization mainly operates.
Public company : if the capital with which the company operates comes from the government, then it is a public company. In this case, the company belongs to the State.
Example : CFE (Federal Electricity Commission) in Mexico or ENAP (National Petroleum Company) in Chile.
Private enterprise : A private enterprise operates with capital provided by the private sector, meaning its creators, shareholders and owners do not belong to the government.
Example : Google as a technology dominican republic phone data provider or a chain of independent hotels.
Mixed enterprise : when an organization operates with private and public capital, it falls into this category. Mixed enterprises are usually dedicated to the extraction or transformation of materials from resources regulated and monitored by the State.
Example : YPF in Argentina, with government capital and private shareholders.
Types of companies according to their legal constitution
Upon creation, every company must acquire a legal identity in order to operate within the labor, economic and tax laws of the country where it operates. This category is also known as “commercial companies.” The most common in most countries are:
Corporation : a group of partners that acquires shares and divides profits, with liability limited to the amount of their investment.
Example : Grupo Bimbo in Mexico.
Limited liability : partners are liable according to their level of contribution to the company's capital.
Example : small family clothing store, where partners are only liable up to the amount they contributed to the business.
Joint : Partners share unlimited, joint and several liability, including debts.
Example : Grocery store run by several partners, where all are equally liable for the debts and obligations of the business.
Cooperative : controlled by its members, profits and losses are distributed equitably, without risk to personal assets.
Example : agricultural cooperative where farmers share resources, distribute profits and assume losses equitably.
Limited partnership : general partners manage the operation, while limited partners are investors without active participation.
Example : family textile workshop.
Simplified joint stock company : facilitates the creation of micro-enterprises with a single partner, limiting resources and responsibilities to the initial investment.
Example : an entrepreneur who opens an online store using the simplified joint stock company (SAS) model.
Public company : if the capital with which the company operates comes from the government, then it is a public company. In this case, the company belongs to the State.
Example : CFE (Federal Electricity Commission) in Mexico or ENAP (National Petroleum Company) in Chile.
Private enterprise : A private enterprise operates with capital provided by the private sector, meaning its creators, shareholders and owners do not belong to the government.
Example : Google as a technology dominican republic phone data provider or a chain of independent hotels.
Mixed enterprise : when an organization operates with private and public capital, it falls into this category. Mixed enterprises are usually dedicated to the extraction or transformation of materials from resources regulated and monitored by the State.
Example : YPF in Argentina, with government capital and private shareholders.
Types of companies according to their legal constitution
Upon creation, every company must acquire a legal identity in order to operate within the labor, economic and tax laws of the country where it operates. This category is also known as “commercial companies.” The most common in most countries are:
Corporation : a group of partners that acquires shares and divides profits, with liability limited to the amount of their investment.
Example : Grupo Bimbo in Mexico.
Limited liability : partners are liable according to their level of contribution to the company's capital.
Example : small family clothing store, where partners are only liable up to the amount they contributed to the business.
Joint : Partners share unlimited, joint and several liability, including debts.
Example : Grocery store run by several partners, where all are equally liable for the debts and obligations of the business.
Cooperative : controlled by its members, profits and losses are distributed equitably, without risk to personal assets.
Example : agricultural cooperative where farmers share resources, distribute profits and assume losses equitably.
Limited partnership : general partners manage the operation, while limited partners are investors without active participation.
Example : family textile workshop.
Simplified joint stock company : facilitates the creation of micro-enterprises with a single partner, limiting resources and responsibilities to the initial investment.
Example : an entrepreneur who opens an online store using the simplified joint stock company (SAS) model.