How are company legal forms defined and compared internationally?

A legal form is the officially registered legal structure under which a company exists. It defines fundamental aspects of a business, including liability of owners (personal or limited), governance and ownership rules, capital requirements, tax treatment, and disclosure and reporting obligations. Legal forms are established by national company law, which means that while many countries share similar legal concepts, the exact structure, rights, and obligations can differ materially across jurisdictions.

Core legal form concepts shared across countries

Most European legal systems are built around a common set of legal concepts, typically including:

• sole proprietorships,

• partnerships (with full or partial liability),

• limited liability companies,

• public companies,

• cooperatives and associations.

However, these concepts are implemented differently in each country and should not be treated as legally interchangeable.

Comparable legal forms across Germany, France, and England

The following table shows functionally comparable legal forms in Germany, France, and England (UK). The comparison is intended to support conceptual understanding only and does not represent a legal equivalence, as each legal form is defined and governed by national law.

Although legal forms in these countries may serve similar economic or organizational functions (for example, GmbH, SARL, and Ltd), they often differ significantly in terms of liability structure, capital requirements, governance rules, and disclosure obligations. As a result, they should be compared on a functional level rather than treated as legally interchangeable entities.

How other European countries relate to these legal forms

Several European countries follow legal traditions closely aligned with either German or French company law, meaning that many of their legal forms correspond directly to those listed above.

• Austria largely mirrors the German legal system. Core structures such as Einzelunternehmen, OG (equivalent to OHG), KG, GmbH, AG, and Genossenschaft exist with comparable legal logic and terminology.

• Switzerland also shares many structures conceptually aligned with German law, including Einzelfirma, Kollektivgesellschaft, Kommanditgesellschaft, GmbH, AG, Verein, and Genossenschaft, although Swiss company law is independent and contains jurisdiction-specific rules.

• Liechtenstein adopts many German-style legal forms (Einzelunternehmen, GmbH, AG), but also includes unique entities such as the Anstalt, which combines elements of a corporation and a foundation and has no direct equivalent in Germany or France.

• Luxembourg is more closely aligned with French corporate law, using structures such as Sàrl, SA, SCA, Coopérative, and Association, while also offering specialized variants like the Sàrl-S (simplified private limited company).

As a result, legal forms in these countries are often recognizable by concept, but must always be interpreted within their local legal framework.

Legal forms are not standardized internationally

There is no single international standard for legal forms. Even when countries use similar names or structures, differences in:

• liability exposure,

• minimum capital,

• governance flexibility,

• reporting obligations,

• and creditor protection

can be substantial. For legal, financial, or comparative analysis, it is therefore essential to rely on the original registered legal form, rather than assuming equivalence based on naming or general structure.

Legal form changes and legal continuity

In most jurisdictions, a change of legal form (for example GmbH → AG or SARL → SAS) does not create a new legal entity. Instead, the same company continues to exist under a different legal structure, provided the transformation is carried out in accordance with national law and recorded in the commercial register.