Types of companies

[Sariana23]

There are three types of companies according to their economic activity..:

Primary sector companies. Agriculture, livestock, fishing, and mining. ...
Secondary sector companies (industrial). Companies engaged in industry and construction, i.e., the transformation of goods.
Companies in the tertiary sector (service sector).

What is the purpose of classifying companies by type of activity? Is it important for an entrepreneur to know where he/she is in the classification? Are the regulatory rules the same for each case?

 

[Alexandoy]

I am not aware of the classifications of corporations here but what I know is the classification of industries. Food production industries are livestock, farming, fishing, etc. Industrial businesses are production outside of food that can also include chemical factories and cement. I think the need for the classification is for the purposes of taxation.

 

[Sariana23]

In my country the classification is as described, I thought it was the same worldwide. Even so, according to your description they have the same characteristics. Here, being grouped by sectors, they have the benefit of some credits or subversion of the government according to their priority and need. It is also taken into account because it provides information to the general public and investors on how the companies operate and how they behave in the present and future.

 

[Sincerem]

In my country the classification is as described, I thought it was the same worldwide. Even so, according to your description they have the same characteristics. Here, being grouped by sectors, they have the benefit of some credits or subversion of the government according to their priority and need. It is also taken into account because it provides information to the general public and investors on how the companies operate and how they behave in the present and future.

Okay, I've seen this type of topic around this forum. Companies are group in many ways, primary, secondary and so on. Food production company is listed under primary, cos food is one of the primary needs of life. That is one of the best company i love to enroll myself into, when the finance is ready for me.

 

[Shigobad20201]

There are three types of companies:

Primary sector companies. Agriculture, livestock, fishing, and mining. ...
Secondary sector companies (industrial). Companies engaged in industry and construction, i.e., the transformation of goods.
Companies in the tertiary sector (service sector).

What is the purpose of classifying companies by type of activity? Is it important for an entrepreneur to know where he/she is in the classification? Are the regulatory rules the same for each case?

In my own country there's no sector and companies are not classified ,but I believe the purpose of classifying companies is to differentiate them based on their works.

 

[Sariana23]

In my own country there's no sector and companies are not classified ,but I believe the purpose of classifying companies is to differentiate them based on their works.

I am surprised that there is no classification in your country with respect to companies @Shigobad, however analyzing your answer yes, it is correct, at least in my country they are classified in order to differentiate them according to their purpose.

 

[Kane]

You are trying to classify companies based on their working area or niche. Companies are basically classified according to the paid up capital.

 

[Sariana23]

You are trying to classify companies based on their working area or niche. Companies are basically classified according to the paid up capital.

I understand what you are describing, but I am referring to companies according to their functionality in the country of residence. I wonder what are the divisions in each country and if their divisions are similar, also what is the importance in classifying them?

 

[Kane]

You are basically talking about business niches. Business niches are different from the business categories. A business can be sole enterprise, partnership enterprise, private limited, corporation or a limited company.

 

[jkk]

I think, the purpose of classifying companies helps in determining market segmentation. It gives a better understanding about the given target groups, and also helps to ensure that their needs are identified and fulfilled.

 

[Sariana23]

I think, the purpose of classifying companies helps in determining market segmentation. It gives a better understanding about the given target groups, and also helps to ensure that their needs are identified and fulfilled.

Your opinion is very accurate, it is very close to what I was looking for. I think you are absolutely right in your description, since I was reading about it. It helps with targeting, market segmentation and in the end satisfying needs.

 

[Justin]

There is so much to learn from this thread. Companies might be working on different areas with different functionality. Some companies are owned privately and some companies are public.

 

[Sariana23]

There is so much to learn from this thread. Companies might be working on different areas with different functionality. Some companies are owned privately and some companies are public.

It is totally correct @Justin, as you describe it, different areas with different functionalities are found in every company, but I would like to know how it works in your country, are they classified according to their functions?

 

[Justin]

In my home country, small businesses are registered with cottage industry department and big businesses are registered with trade and industry department.

 

[Sariana23]

In my home country, small businesses are registered with cottage industry department and big businesses are registered with trade and industry department.

I understand, they are classified by their size and not by their functions. I was reading something related to countries where they classify companies by size between small, medium and large companies. In your country there are only two institutions where they can register which is the department of handicraft industry and the department of commerce and industry. Interesting!

 

[Justin]

There are some extra rules for registration. If you are dealing with finance and investment, you will have to register with the central bank, if you are dealing with agriculture produce, you will have to register with agriculture department.

 

[Sariana23]

There are some extra rules for registration. If you are dealing with finance and investment, you will have to register with the central bank, if you are dealing with agriculture produce, you will have to register with agriculture department.

You mean that after registering with the craft industry department and the department of commerce and industry according to their size, they must also make other registrations according to their functions, either with the central bank or, failing that, with the department of agriculture.

 

[Sheyemanu]

Concerning the above classification of different companies in your avove post, my take on this is that I am unaware of this classification by activitiy that you have listed above, in fact this is the first time I am hearing about it to be honest

 

[nimzy]

Seriously your classification sound new to me but I don't know if they are almost the same with my opinion. to me I know of private company, public company and lastly the one person company which all operate distinctive if the other.

 

[Sariana23]

Seriously your classification sound new to me but I don't know if they are almost the same with my opinion. to me I know of private company, public company and lastly the one person company which all operate distinctive if the other.

Of course in general it is as you explain, but each of them is grouped by their purpose with customers, in my country they are classified the way I broke it down, that's why I decided to describe the thread and see the different ways they are classified in other countries. In this way I will acquire new knowledge.