A corporation is a legal entity form to conduct business. It can be form by one person or a group of people and can take many different forms. Owners of a corporation are know as members or shareholders. Its legal status gives a corporation the same rights as a natural person, meaning that a corporation can incur debt and be sue. Different types of corporations are tax differently, so the taxation of a corporation defines its type.
What are the Types of Companies?
Companies are divide into two email list groups: “ Personnel Companies” and “ Capital Companies ”. According to the TCC (Turkish Commercial Code), although there are many different types of companies, most companies fall into these two main categories.
According to the Turkish Commercial Code, capital companies are of three types: joint stock companies , limit companies and limit partnerships .
1st Party Companies
Sole proprietorships are own real-time information sharing and operate by one person, usually the founder of the business. A sole proprietorship is relatively easy to set up and gives the owner the advantage of complete control over it. The company may have employees or be run by a single owner.
The biggest disadvantage of a sole proprietorship is that there is no legal separation between the owner and the corporation. This means that the owners are personally liable for the corporation and may be requir to use their personal assets to meet business debts or liabilities.
The advantages of a sole proprietorship are as follows:
- Simple form of organization
A sole proprietorship is the simplest form of establishing a company.
- Freedom to make decisions alone
- Security
Privacy is another major advantage hindi directory offer by sole proprietorships. This is because the entire business is handle by the owner of the company himself and therefore the trade secrets are known only to him.
In addition, the company owner is not require to disclose or publish their accounts. In today’s business environment, the less a competitor knows about a person’s business, the better off the person is.
- Tax advantage
Compared to other forms of business, sole proprietorships enjoy certain tax advantages.
2. Capital Companies
Capital companies are companies with legal personality and whose liabilities are limited to the capital invested in the company.
The basic characteristics of a capital company are as follows:
- They have rights just like a person
The law treats a corporation as a legal person because it has a name and bank accounts. A corporation can own property under its own name, sue other companies or individuals, or partner with other companies. In other words, it does all the things that a person can legally do. Therefore, the law treats a corporation as an artificial person.
