SOLE TRADER or SOLE PROPRIETOR

Što je Ltd., a što PLC i kako ih usporediti s hrvatskim d.d.-om ili d.o.o.-om? Nastojat ćemo objasniti pravno ustrojstvo tvrtki engleskoga govornog područja. Hrvatski se prijevodi ne mogu potpuno usporediti s engleskim pravnim oblicima tvrtki, nego s onima najsličnijeg ustrojstva.

There are different ways of starting a business. The law prescribes what you must do in each case. You have to know how to register a business or even if you need to register it at all. Find out the similarities and differences between setting up companies in Croatia and in the UK. Here are some of the most common legal forms of business in the UK:

SOLE TRADER or SOLE PROPRIETOR

The business and the owner are the same person in law. The owner is responsible for all the debts of the business. There is only one owner, no partners. A sole proprietorship is not a corporation and it does not pay corporate taxes – the owner pays personal income tax on the profits made. Most sole proprietors will register a trade name or a DBA (Doing Business As). This allows the proprietor to do business under a name other than their proper legal name and also to open a business account with banking institutions.

GENERAL PARTNERSHIP

In the case of general partnership a business is owned by two or more people (partners) who are personally liable for all business debts. To form a partnership, each partner normally contributes money, valuable property or labour in exchange for a partnership share, which reflects the amount contributed. Partnerships are easy to form since no registration is required with a government agency (although tax registration and other requirements to conduct business may still apply).

LIMITED LIABILITY PARTNERSHIP

This type of partnership protects a partner from personal liability for negligent acts committed by other partners or by employees not under his or her direct control.

UNLIMITED PARTNERSHIP

This is a type of partnership where the members’ liability is unlimited – i.e., they are liable to contribute any sums required to pay off the company debts, should it go into bankruptcy.

PRIVATE COMPANY (Ltd.)

This is a company which is not permitted to offer its shares to the public. This legal form tends to be used for smaller businesses. There is no minimum capital requirement. Approximately 90% of private companies are small or medium-sized.

PUBLIC LIMITED COMPANY (PLC)

This legal form is appropriate for larger businesses where shares are intended to be available to the general public. The company is not obliged to float its shares or offer them for sale, and it can remain as private as the shareholders wish. A public company must have a minimum authorised share capital of £50,000.

STATE-OWNED COMPANY

It’s an enterprise, often a corporation, owned by a government.