How many types of company registration are there?

Company Registration is divided into 2 types as follows:

1. Commercial Registration (Sole Proprietorship)

Commercial registration (Sole Proprietorship) refers to starting a business with only one owner and no employees. This is suitable for small-scale businesses with low capital, such as online selling or running a small retail shop. The business owner has full freedom to make decisions and keeps all the profits, but in case of losses, they are also solely responsible for everything.

2. Corporate Registration (Legal Entity)

Corporate registration (Legal Entity) refers to a business with at least two owners who jointly own the company. All decisions must be approved by all business owners. This type of registration is in the name of the company and is suitable for medium to large-scale businesses. Legal entity registration is further divided into 3 types as follows:

2.1. General Limited Partnership

A partnership where all business owners have the right to manage the business and share the profits, as well as jointly be responsible for the liabilities without any limit on the amount. Registration as a legal entity is optional.

2.2. Limited Partnership

A business with at least two partners who jointly invest and operate the business, with no minimum capital requirement. The shareholders are divided into two types as follows:

1. Limited Partner: A partner who is only responsible for the business's debts up to the amount of their investment. This type of partner has no right to manage or make decisions for the partnership but can offer opinions, act as an advisor, or inquire about the business's operations.

2. General Partner: A partner who is jointly and fully responsible for the business's debts without any limit on the amount. The law requires that a limited partnership must have at least one general partner. This type of partner has full rights to manage and make decisions for the partnership.

2.3. Limited Company

A business with at least two entrepreneurs who agree to operate the business for profit. A limited company must be registered as a legal entity. The advantages of a limited company include long-term credibility, and shareholders are only responsible for debts up to the amount of their registered share capital. They are not liable for more than their investment.