Discover the 10 types of business partnerships that exist on the market

[seonajmulislam00]

A business corporation is formed by a group of people with a common objective: to carry out an economic activity in a professional and organized manner to produce, market or offer goods and services to obtain profit.

But it is not enough to say “I am going to open a company”. In addition to choosing the ideal partner , it is necessary to understand which types of business partnership fit your profile and the characteristics of your business.

To help, we have separated the 10 types of business associations that exist in Brazil, so that you can understand a little more about each one and choose which ones suit your business and deserve further research.

10 types of business society
1. Simple Company
The first of the 10 types of business partnerships that we will present is the most basic: the Simple Partnership. This format can be used for professional partnerships that provide services, that is, it occurs when the partners themselves carry out the company's activities.

2. Public Limited Company
The Public Limited Company is the most common type of saudi arabia phone number lead business corporation in Brazil and, because it is somewhat complex, is generally used by more mature companies. Composed of two or more partners, its share capital is divided into shares or quotas, with the aim of generating accumulated capital for the partners. Each partner has their own responsibilities according to their percentage of quotas.

3. General Partnership
In a General Partnership, it is established that all partners of the company are responsible for its financial and tax obligations. This option also allows partners to limit their responsibilities among themselves when drafting the articles of association.

4. Limited Partnership
Now we begin to present the most complex types of business partnerships. In a Simple Limited Partnership, the partners are divided into two types: limited partners, who make up the company's share capital without being part of its management, and general partners, who make up both the company's capital and its management, with unlimited liabilities.

5. Limited Partnership by Shares
As the name suggests, in this type of company, the company's capital is divided into shares or quotas. Here, only the managing partners, called directors and previously chosen in the company's articles of incorporation, have unlimited liabilities.

6. Limited Liability Company
This option is quite common in Brazil. In this case, the company is formed by two or more partners, who are responsible for the percentage of share capital invested. It is necessary to include the acronym “LTDA” in the corporate name, which means “limited”.

7. Single-member Limited Liability Company
This type of business corporation has very similar characteristics to the EIRELI (Limited Liability Individual Company), that is, the entrepreneur can open his company with just one partner: himself.

8. Cooperative Society
The Cooperative Society is organized in a very democratic way in terms of its economy and allows free participation by all, always respecting the rights and duties of each member. The responsibilities of the members can be limited, when they are only responsible for the value of their shares and any losses, or unlimited, when the member is jointly and severally liable for the social obligations of the business.