Company

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A company is a form of business organization.

Types There are various types of company that can be formed in different jurisdictions, but the most common forms of company are:

a Private limited company by shares. The most common form of company used for business ventures.
a company limited by guarantee. Commonly used where companies are formed for non-commercial purposes, such as clubs or charities. The members guarantee the payment of certain (usually nominal) amounts if the company goes into liquidation, but otherwise they have no economic rights in relation to the company .
a company limited by guarantee with a share capital. A hybrid entity, usually used where the company is formed for non-commercial purposes, but the activities of the company are partly funded by investors who expect a return.
an Unlimited Company. A company where the liability of members for the debts of the company are unlimited. Today these are only seen in rare and unusual circumstances.

The foregoing types of company are generally formed by registration under applicable companies legislation. Less commonly seen types of companies are:

Royal charter. Prior to the passing of modern companies legislation, these were the only types of companies. Now they are relatively rare, except for very old companies that still survive (of which there are still many, particularly many British banks), or modern societies that fulfil a quasi regulatory function (for example, the Bank of England is a corporation formed by a modern charter).
statutory companies. Relatively rare today, certain companies have been formed by a private statute passed in the relevant jurisdiction.
companies formed by letters patent. Most corporations by letters patent are corporation sole and not companies as the term is commonly understood today.

In legal parlance, the owners of a company are normally referred to as the "members". In a company limited by shares, this will be the shareholders. In a company limited by guarantee, this will be the guarantors.

Some Offshore Financial Centre have created special forms of offshore company in a bid to attract business for their jurisdictions. Examples include "segregated portfolio company" and restricted purpose companies.

There are however, many, many sub-categories of types of company which can be formed in various jurisdictions in the world.

Companies are also sometimes distinguished for legal and regulatory purposes between public limited company and private company. Public companies are companies whose shares can be publicly traded, often (although not always) on a regulated stock exchange. Private companies do not have publicly traded shares, and often contain restrictions on transfers of shares. In some jurisdictions, private companies have maximum numbers of shareholders.

See also

Companies law
Corporate law
Corporation
Partnership
Joint-stock company
Trust (law)
Voluntary association
Guild
Sole proprietorship

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