16 Main types of companies

A company is an organization legally formed by one or several people, with the objective of carrying out activities for profit.

Companies have various classifications according to multiple factors, but in general terms, it is expected that a company generates a contribution or contribution to society by generating products or services that meet the needs of the group.

Although decades ago it was only considered that companies were organizations with a great material and human structure, over time the concept has become more flexible, giving way to new classifications that even allow a company to be considered a commercial initiative promoted by an individual and with a local scope.

See also Company

Types of companies according to their legal form

A company can be constituted in several legal ways, depending on the number of partners and their acquired responsibilities.

Autonomous companies

They are those made up of a person. It is a very common type of company in the cases of professionals or workers who want to offer their services on their own.

Corporate companies

All companies that involve the creation of a legal entity to be able to operate legally belong to this classification. There are different types of corporate companies depending on the laws of each country, but some of the most common are:

• Corporations (SA): are organizations in which the capital is divided according to what each partner has contributed, who are also holders of the company's shares. Walmart, the American supermarket chain, is a corporation. Limited liability company (SRL): in this case, the partners also contribute the capital, but if a legal problem occurs, they do not respond with their personal assets. General Motors in Mexico, is a SRL Cooperatives: they are associations in which the benefit of a group is sought. Generally, they are not for profit. A very common example is the associations that agricultural workers make to be able to negotiate their crops on equal terms.

Types of companies according to the number of workers

A company can be classified according to the number of people who work in it.

Micro businesses

They are companies with less than 10 workers. They are usually the first step of a professional or entrepreneur who works under the figure of autonomous company. A wedding photography company, made up of a photographer, a videographer, and two assistants, would be an example of a microenterprise.

Small companies

A company is considered small if it has between 11 and 50 workers. In these cases, a well-defined work structure usually already exists and they are a very common figure in family businesses. Many food retail outlets (bakeries, restaurants) are small businesses.

Medium businesses

They have between 50 and 250 workers. Medium-sized companies are considered a vital part of the countries' economies, since they are the most numerous type of company and therefore contribute to job creation. An advertising agency or a local media outlet could be examples of medium-sized companies.

Big enterprises

They have more than 250 workers. They are not usually the most abundant in quantity, but due to their size they generate a valuable economic and productive contribution to the economy. Supermarket chains and banks with multiple branches are large companies.

Types of companies according to the economic sector

Depending on whether the company exploits or transforms the raw material, or if it offers products or services, it is classified into one of the following categories:

Primary sector companies

They are companies dedicated to the extraction of raw materials. Companies dedicated to livestock, fishing, logging or oil are some examples of this sector.

Secondary sector companies

Companies that transform raw materials into tangible products belong to this group. The meat, wood, textile or construction industries are part of this type of company.

Tertiary sector companies

These types of companies are dedicated to the generation of services that can meet the needs of the population in essential areas (food, water, electricity, gas, internet, telephone, etc.) and non-essential items (entertainment, tourism).

Supermarkets, cable TV companies, restaurants and the media are part of companies in this sector.

Types of companies according to the origin of their capital

The origin of a company's funds can only be public or private. Based on this, they are classified into:

Public enterprises

They are those whose resources are provided by the State. In some countries, public services are managed by companies of this type.

Private businesses

In this case, the capital is of private origin and is provided by private individuals or legal entities.

Joint ventures

Joint ventures are usually managed by private organizations, but depend on funds or supervision from public entities. Some companies dedicated to oil or mining exploitation operate under this scheme.

Types of companies according to the scope of their activity

Depending on the territorial scope of their activity, companies can be:

Local Businesses

They are limited in scope, and are generally micro, small or medium-sized companies. A kiosk, greengrocer or butcher are some examples.

Regional companies

As their name indicates, they act in a specific region, such as a state or province. A bank that, due to its size, only operates in a specific part of the country, would be a regional company.

National companies

Its operations extend throughout the country, which usually implies a highly specialized economic and commercial structure. Large companies respond to this model, although a micro, small or medium-sized company that has the capacity to supply a national demand (such as an e-commerce , for example), could also fall into this category.

Transnational companies

They operate inside and outside the country. They are the most far-reaching companies, since they can offer their products and services in different markets. Amazon, for example, is one of the best known multinationals.