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Comparison between different forms of business enterprise | Companies guide
Content
| Sole trader | Trading partnership | Limited partnership | Limited company | Economic association | |
|---|---|---|---|---|---|
Owner´s liability for enterprise´s debts |
Personal liability |
Joint and several also personal liability |
General partner: joint and several also personal liability. Limited partner: for invested capital |
No personal liability. Risks only invested capital |
No personal liability. Risks only contributed capital |
Capital |
No |
No |
General partner: No Limited partner: Assumes liability for minimum 1 kr |
Min. 50 000 kr private company Min. 500 000 kr public company |
Yes, in form of contribution |
How many owners/members required? |
Always 1 natural person |
At least 2 natural persons or legal entities |
At least 2 natural persons or legal entities |
Enough with 1 natural person or legal entity |
Minimum 3 members, natural persons or legal entities |
Who represents the enterprise? |
The trader himself |
The partners | The general partner(s) | Board of directors, Managing Director | Board of directors, Managing Director |
Auditor compulsory |
*) |
*) |
*) |
**) No, in most cases not, but exceptions occur |
Yes, at least one. Major assoc. must have authorized |
Taxation |
Trader pays tax |
Partners pay tax |
Partners pay tax |
Company pays tax |
Association pays tax |
Can the enterprise have employees? |
Yes |
Yes | Yes | Yes | Yes |
Normally terminated by liquidation |
No | Yes | Yes | Yes | Yes |
*) There can be exceptions for large businesses and for those with a special type of business activity, for example a firm of lawyers.
**) Most private limited companies may decide not to have an auditor. Large enterprises and enterprises with special business activities, for example financial business, must always have an auditor.
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