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Introduction
The term “company” is often used in everyday speech to refer to an enterprise or business activity. Legally, however, the term has a specific meaning. In this article we will take an in-depth look at the concept of a company, highlight its legal aspects and examine the different types of companies.
Key Facts
- Company name refers to the name under which a merchant appears in commercial transactions and conducts business.
- The company name is regulated in the German Commercial Code (HGB) in §§ 17 ff. HGB.
- There are different types of companies: Sole traders, partnerships, corporations and cooperatives.
- The choice of company type depends on factors such as type of business and degree of liability.
- The company name must be entered in the commercial register and meet legal requirements.
- The importance of the company in business dealings is central to the identification of the company.
- Liability regulations vary: Sole proprietorships and partnerships are liable without limitation, corporations only with company assets.
Definition and legal framework
In legal terminology, the term “company” refers to the name under which a merchant appears in commercial transactions and signs his name. It is therefore the name of the company under which it is registered in the Commercial Register and conducts business. In Germany, the company name is regulated in the German Commercial Code (HGB) in §§ 17 ff. HGB.
Types companies
There are different types of companies, which differ in their structure and legal characteristics:
- Sole proprietorship companies: These are companies that are managed by a single person. The owner has unlimited liability with his assets.
- Partnerships: These include the general partnership (OHG) and the limited partnership (KG). In partnerships, several persons join together to operate a joint business.
- Corporations: Corporations include the limited liability company (GmbH) and the stock corporation (AG). In these types of companies, the liability risk is limited to the company’s assets.
- Cooperatives: These are associations of persons that generally pursue a common economic goal.
- Registered traders (e.K.): This is a special form for sole traders who are registered in the Commercial Register.
Choice of the type of company
The choice of the type of company depends on various factors, such as the type of business, the number of participants, the required capital and the desired degree of liability. It is important to carefully weigh the pros and cons of each type of company and seek legal advice if necessary.
Company name
The company name is an essential element of the company. It must be registered in the Commercial Register and meet certain legal requirements. For example, the name must be distinctive and not misleading.
Importance of the company in business transactions
The company is of central importance in business transactions. It serves to identify the company and is often the first thing that customers, suppliers and other business partners perceive. A well-chosen company name can therefore also have a significant impact on the success of the company.
Liability and legal personality
Liability regulations vary depending on the type of company. Whereas in the case of sole proprietorships and partnerships the owners or partners have unlimited liability, in the case of corporations liability is limited to the company’s assets. This can play an important role in deciding on a particular type of company.
Conclusion
A company is more than just a name; it is a legal entity that appears in commercial transactions. Choosing the type of company and the company name are crucial steps in starting a business and should be carefully considered. It is important to understand the legal framework and the associated obligations.
