What is Ltd and what Plc. and how to relate them with Croatian d.d. or d.o.o? In this unit we will outline the legal forms of business in English speaking countries, the United Kingdom in particular. The conclusion is that Croatian equivalents are not interchangeable but rather represent the most similar legal solutions. There are different ways of starting a business. The law outlines 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 starting 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 proprietorship. 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 and 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. 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).
