Legal Forms

Question 1

What does Legal form mean?

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Answer 1

• it describes the provisions that turn a company into a legal entity
• one onf the main decision points of the founders of a new business to choose a suitable / the best legal form for the company
• important, bc brings number of consequences that can widely differ

Question 2

What does the legal form have direct bearing on?

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Answer 2

• question of liability, who is reliable to what extend?
• rights and responsibilities to manage the business
• profit and loss sharing
• financial opportunities and alternatives
• taxation
• joining and leaving of partners in the business
• rules relating to financial statements, accounting and auditing
• costs rel. to setting up business in respective form

Question 3

What kinds of Legal Form of private and public companies are there?

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Answer 3

Private:
- sole trader/ proprietor
- partnerships
- limited companies
- mixed forms

Public:
- Corporation
- institution
- foundation

Question 4

What counts as Partnerships?

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Answer 4

• OHG
• KG (LLP)
• (silent P., non-trading)

Question 5

What counts as limited companies?

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Answer 5

• GmbH (Ltd.)
• AG (pLC)
• (KGaA, SE)