Classification of companies, with explanation and examples
Different ways of dividing the types of companies according to the categories to which they belong.
Nowadays we live in times of frenetic (and complex) economic activity, where the big decisions and trends are set by companies at a global level and at a local level to a lesser extent. The classification of companies is a way of ordering and organizing the business sector to establish a good financial development in modern societies. In the case of Spain, which is the one we are interested in, the administrative framework is to some extent complex.
For this reason, it is important to it is important to take very much into account the classification of existing enterprises in the legal-economic order, depending on the Ministry of Finance of the State, which is the competent body and public regulator of the Spanish economy. This is not a minor issue, since a bad management or registration of the type of company that we want to constitute, can determine the future of the same one, which can lead us to the success as much as to the failure.
What is a company?
A company is a productive unit formed by a number of people and / or shareholders with the ultimate goal of exploiting a given economic activity to the maximum.. According to their nature, companies can take different forms, which we will detail in the following points.
1. Classification of companies according to their legal form
The following is a list of the most common companies according to their legal form.
1.1. Self-employed Entrepreneur
This type of company is exclusively individual. It has no partners, no organizational structure other than its own staff, and no other organizational structure.. The individual decides, manages, organizes and determines the capital that can be contributed to generate economic activity.
1.2. Public Limited Company (S.A.)
This type of company is probably the most common at the national level. A corporation is composed of a determined capital stock, an amount agreed upon by the shareholders that comprise the company. The form in which the company is administered is through the election of a general director or manager, elected from among the shareholders and renewable on a temporary basis. The minimum capital to be contributed is €60,000 gross.
1.3. Limited Liability Company (S.L.)
Within the classification of companies, corporations take different forms. The limited liability company is designed to promote the creation of small and medium-sized companies, which tend to be another of the most common forms of business incorporation. The minimum capital is 3,000 euros gross, with a maximum of 5 partners.
1.4. Cooperative Society
Cooperative societies are especially common in the primary sector. That is, agriculture, fishing and livestock. The members join the cooperative on a voluntary basis, as well as deregister in the same way. The main objective of this association is to to leverage the knowledge and resources of different companies to achieve a common goal/benefit.. The capital to be contributed will be decided in the constituent statutes of the company.
1.5. Civil Company
This type of company is one of those that has aroused most interest in recent years. The most interested sector is the technical-legal sector. That is, professionals working in the legal sector, builders, computer engineers and quantity surveyors, among others. In addition, almost 90% of small companies opt for this modality as a partnership between self-employed and professionals in the same sector.
2. According to the size of the company
This point turns out to be another fundamental pillar when deciding the definitive type of company. Let's look at the different classifications according to the size, which is mainly represented by the number of workers.
2.1. Micro companies
They do not exceed ten employees, including the founder of the company. They can become organizations with potential if they are invested in, as they are considered innovative ideas with a vision of the future. Here we find entrepreneurs and start-ups..
2.2. Small company
The small company is one of the most common models for setting up an entity of this type. Of all the classifications, it is the most common. It usually has between 10 to 50 workersfamily or trusted friends who invest capital from their own resources or savings. Bars, restaurants, fashion stores, etc.
2.3. Medium-sized company
It is the mother of all those that make up this list. They fall under the label of "SMEs", small and medium-sized companies that make up a large part of the economy of any country. With a minimum of 60 workers and a maximum of between 300 and 400, they are solid structures of great economic success.
2.4. Large companies
This is clearly the riskiest bet. They usually have no less than 300 employees, a complex and structured organization, and their ultimate goal is to internationalize the product offered. The luxury sector is a good example of a large companyThe luxury sector is a good example of what a large company is: jewelry, watches, automotive, restaurant franchises, etc.
3. Classification of companies according to their capital
Finally, the origin of the capital is a common resource for the classification of companies, which are basically 3 types. Let us see.
3.1. Private capital
All the investment and financial resources deposited come from the effort that each individual at a particular level contributes to the constitution of the company. As it is evident, the objective is to achieve the maximum profit with the capital invested..
3.2. Public capital
Contrary to what happens in the previous point, public capital companies are subsidized by money (tax recapture) from the State coffers to develop economic activities aimed at providing services to ordinary citizens. In this case, profitability or profit is not sought.
3.3. Mixed capital
This type of company is very common in societies or countries of the so-called Welfare State model. The country in question intends to offer specific services to reach as many inhabitants as possible. possible. However, in some cases, public investment is not sufficient and private entities are used to finance the project. The health sector (public hospitals) and the teaching sector (universities) draw heavily on this type of capital.
(Updated at Apr 12 / 2024)