Module 5: Entrepreneurial training

Lesson Title

Types of Entrepreneurship

 

Introduction


With respect to entrepreneurship, in Portugal there are different legal forms to take into consideration before starting a business. Depending on the type of company, there are different legal forms with different requirements that the entrepreneur can not ignore. The central issues are: liability, startup capital, additional formal aspects in the foundation or accounting matters after the founding of the company. This topic is intended to list the most important legal forms.

 

 

Lesson time foreseen

1 Lesson

 

Lesson Content

Sole proprietorships: A sole proprietorship is a single owner of a business, who has the power to dispose of all the assets of the company and to whom all decision-making power belongs. The formation of a sole proprietorship does not require minimum capital, but the holder is fully responsible for his business. The entrepreneur is responsible for all the debts contracted by the company with all the assets constituting his or her personal or business assets.

 Unibanco Shareholders Association : It is made up of a single member. The company contains in its name the word "Unipessoal" or the expression "Sociedade Unipessoal", followed by "Limitada" or the corresponding abbreviation "Lda". It requires, for training, a minimum value of € 5,000, held by a natural or legal person, in cash or in cash assessable assets. The company can be created online and at the "company on time" counters.

Individual Limited Liability Company: It is a company that belongs to the commercial sector, made up of a single individual. The firm must have the full or abbreviated civil name of the entrepreneur, and a reference may be added to the branch of activity, with the expression "Individual Establishment of Limited Liability", or the abbreviation "EIRL" nº 248/86 and nº 1 and 2 of article 40 of DL nº 129/98, of 13 of May). It will have to have a minimum capital of 5,000 €, of which one third is obligatory to be in monetary form (3333.33 €), and things or rights susceptible of attachment may make up the rest of the mentioned minimum capital (nº 1 and nº 3 of art. 3 of DL No. 248/86). The assets of the company and the assets of the entrepreneur are independent of each other. However, there are cases in which assets are conjugated. This type of company can only be created by the traditional method
 
About Us : You must have at least two members. Industry partners are not allowed. The name of the firm must end with the word "Limited" or its abbreviation "Lda". The first part of the name may be chosen from the following options: a) name consisting of the full or abbreviated name of one, some or all members; b) expression referring to the field of activity; c) combination of elements a) and b). You must have a minimum capital of           € 5,000 divided by minimum value shares of € 100. The assets of the company are independent of the personal assets of the partners. . Liability is limited to the share capital and it is this capital that is accountable to the debts of the company. The partners may have additions in their responsibility if the stipulated contract so indicates. This type of company can be created online and at the "company on time" counters.

Anonymous society: It must have a minimum number of five sole or collective shareholders (also referred to as shareholders), or a single member as long as it forms a partnership. Industry partners are not allowed. The name of the firm always ends with the expression "Corporation" or its abbreviation "SA". The rest of the name may be chosen from the following options: a) name consisting of the full or abbreviated name of one, some or all members; b) expression referring to the field of activity; c) combination of elements a) and b). To open this type of company requires a minimum capital of 50,000 euros, divided into shares of equal nominal value with a minimum of one cent. The shares may be represented in a titled form - paper documents, or in a book-entry form - represented by registration in the account of the purchaser, with the registering entity. There are nominative shares where holders are known, or bearer shares, in which the issuer does not know the identity of the holders. Each member is responsible for the value of the shares to which it is subscribed. This type of company can be created online and at the "company on time" counters.
 
Partnership in Collective Name: It must have at least two partners. Industrial partners are admitted as long as their social contribution is given value for  their contribution in industry. The name of the firm is composed by the full or abbreviated name of the surname or the firm of all, some or one of the partners, followed by the expression "and Company", its abbreviation "Company" or any other expression or word that indicates existence of more partners. There is no mandatory minimum amount. The responsibility is unlimited, subsidiary and solidary, since the members respond not only for their entries, but also for the entries of all other members. Entrepreneurs also enter their personal assets if there is an insufficiency of the assets of the company. Industry partners have equal responsibilities with other partners. However, in the internal plan, they only respond for social losses if so is stipulated in the contract established. The personal assets of the members and the assets of the company are merged. The creation of the company is done through the traditional method. One of the main characteristics of this type of society is that it works at the same time as advantage and disadvantage - solidarity accountability. That is, each partner responds not only for their debts but also for the debts of all other partners.

 Company in Comandita: It consists on a mixed society, since there are two types of partners:
Committed - contribute with  goods or services
Commanders - contribute with capital, take over the management and effective direction of society.
In addition to two types of different partners, there are also two possible forms of partnerships:
Simple - minimum number of members in a company of this type is two;
By shares - the shares of the limited partners are represented by shares. In a limited partnership of this type, the minimum number of partners is six - five limited and one general.

The firm must have a full or abbreviated name, or at least one of the partners with unlimited liability (common), followed by "in Comandita" or "& Comandita" for companies of the simple type, and in the case of joint-stock companies, add "in Commands for Actions" or "Commands for Actions".
You must have a mandatory minimum capital of € 50,000
The responsibility is different for different types of members:
Commanders - have limited responsibility, and are only responsible for their entries;
Jointly - in the face of the debts of the company, this type of partner responds unlimitedly and jointly with each other (each member responds not only for their debts, but also for the debts of all other partners, with their personal assets if necessary).
With regard to assets, in the case of limited partners, personal wealth is totally separated from the assets of the company. The limited partners, on the other hand, possess the assets of the company merged with their personal assets.
This type of company can only be created through the traditional method.

Cooperative:
This type of company aims to satisfy the interests of its members - common economic, social and cultural needs, aspirations. These gains will always appear in the personal patrimonies of the cooperators, and never in the association. That is ; even when there is a positive revenue balance, it is distributed by its members according to the investment made by each one as a refund.
A cooperative is a collective, nonprofit association of free constitution, variable capital and composition.
It is divided into two different degrees:
First degree - cooperators are natural or legal persons;
Higher rank - associations that are grouped in the form of unions, federations and confederations.
For cooperators, in the case of a first-degree cooperative, the minimum number of members is five. In higher-level cooperatives the minimum is two members.
 The minimum capital required is € 2,500.
As for liability, members can acquire different statutes within cooperatives - with limited liability for some, and unlimited for others. Usually, the liability of each cooperator is limited to the amount of subscribed capital.
The creation of the company is done through public deed and by private instrument.
 
 

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