- In Algerian commercial law, companies are categorized based on their legal structures and characteristics. Understanding these types is essential for second-year law students specializing in commercial law. Here are the primary company types:
1. General Partnership (Société en Nom Collectif - SNC):
Formed by two or more partners.
Partners have unlimited and joint liability for the company's debts.
Typically used for small or family-run businesses.
2. Limited Partnership (Société en Commandite Simple - SCS):
Consists of general partners (with unlimited liability) and limited partners (liable only up to their contribution).
General partners manage the company, while limited partners are passive investors.
3. Limited Liability Company (Société à Responsabilité Limitée - SARL):
Can be established by one or more individuals.
Shareholders' liability is limited to their capital contributions.
Commonly chosen for small to medium-sized enterprises.
4. Joint Stock Company (Société par Actions - SPA):
Requires a minimum of seven shareholders.
Capital is divided into freely transferable shares.
Suitable for large-scale businesses.
5. Limited Partnership with Shares (Société en Commandite par Actions - SCA):
Combines features of partnerships and joint stock companies.
Includes general partners (with unlimited liability) and shareholders (liable up to their share value).
6. Sole Proprietorship (Entreprise Individuelle):
Owned and managed by a single individual.
No legal distinction between the owner and the business entity.
Owner has unlimited liability for business obligations.
Each company type offers distinct legal and financial implications. Selecting the appropriate structure depends on factors like li
ability, capital requirements, and management preferences.