In setting up a company, it is desirable to be assisted by a notary who will help you choose the form of company that, from the organizational standpoint, is best suited to achieving the corporate purpose.
From the organizational point of view, companies can be distinguished into the following types:
a. Partnerships
These include:
- informal partnerships;
- general partnerships;
- limited partnerships.
b. Companies limited by shares
These comprise:
- joint-stock companies;
- limited partnership with share capital;
- limited liability companies.
All the above companies are for profit, that is to say, they are set up in order to make profits which will subsequently be distributed among the partners.
The type of company to be set up is decided by the partners; companies with the purpose of carrying out a commercial activity can only take the form of an informal partnership. This is the only restriction with which they must comply.
There is also the possibility of setting up other types of company in the form of cooperatives and mutual societies based on the principle of mutuality. Their aim is to provide their members with goods, services and job opportunities at better conditions than those offered in the marketplace. The provisions that govern joint-stock companies may also apply to cooperatives and when this is envisaged in the Memorandum of Association, the provisions governing limited liability companies shall apply. Mutual societies are governed by the rules that govern cooperatives.
Finally, all companies, except for informal partnerships, may have the aims of a consortium, i.e. coordinate the economic activities of several entrepreneurs who do similar business or who contribute to specific steps in the overall business cycle.