Parties wishing to set up a company must enter into a contract: company agreement (Memorandum of Association) under which two or more persons transfer assets or services for doing business jointly with the aim of sharing the ensuing profits.
The legal system also envisages the establishment of a business entity by a single person through a unilateral deed: for instance a stock company with a single shareholder, a one-man limited responsibility company, or a spin-off decided by the shareholders’ meeting of the parent company.
If the partnership is not set forth in a document, but is the result of the behaviour of the partners, then the company is a ‘de facto’ or unregistered company. However the lack of a formal document creates difficulties because there is no proof that the company exists. De facto joint-stock companies are forbidden.