Different Types of Business Organizations and Their Legal Formation

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Business Law
Explore how different types of business organisations are legally formed
The business organizations of UK helps in conducting business with
more effectiveness. There are mainly two types of business organizations
which are unincorporated and incorporated organization. Further, it has
been explained as follows:
Unincorporated organization: These are those business
organizations that has been made with less complex process. In this
organization are formed without any problem as no legal interference is
their. The organization covered within it are sole proprietor and partnership
they are explained as follows:
 Sole proprietorship: They are considered to be those organizations
which is most commonly formed business organizations. In this
single owners are there and holds responsibility regarding various
business activities. The owner of these business are known as sole
proprietor and all activities is handled by them. Registration process
include INHRC number which is required to be generated and name
is required only to commence business.
 Partnership firm: These are the organizations that has been made
with the help of two individual's with an motive to earn profit. In
this element are involved which is based upon aspects like risks,
costs, benefits and responsibility over running organization.
Partnership are mainly of two types that is general and limited. The
process of registration is based upon INHRC number.
Incorporated organization: These are those organizations that has been
formed through complex an lengthy process. In this organization which are
of public and private nature they are explained as follows:
 Private organization: These organizations is based upon various
kinds of documents collected by an organization and it is submitted
with this operations performed by them includes lengthy and time
consuming process. They uses Pvt Ltd in the end of its name and
shares are not given ton public.
 Public organization: They are those kind of organization which has
Public Limited in its end and can sell or share debentures to general
public. In this different aspects is covered that is based over making
organization stable in nature. In this digital signature of all owners,
members of memorandum of association and other importation
documents of required to be collected.(Surdam, 2020). Public limited
companies are also required to have at least two directors and a
company secretary.