Difference between company and company

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Unfortunately, many people do not know that there are differences between a company and a company. Different legal norms are tied to both, so it is important that you understand the differentiation.

A company has differences to the company.
A company has differences to the company.

Classify the differences between a company and a company

  • In principle, a company is not the same as a company. Both have very different consequences under labor law.
  • These differences always become relevant when it comes to a transfer of business, the election of the works council or the election of the staff council. This has an effect on the employee when it comes to protection against dismissal and for this purpose, for example, the number of employees in the company has to be determined.
  • A company is organized independently and is geared towards achieving work success.
  • Legally speaking, your entrepreneurial contractor is the company owner. That means that as an employee you don't have any employment contract with a company, but with the legal person, for example with XY-GmbH. This GmbH is registered under the company name XY in the commercial register and can run one or more companies with several branches.
  • If you have already understood this, the differentiated structure is clear to you.
  • Difference between company and company

    Those who do not deal with it hardly know the difference between a company ...

When to speak of joint ventures and corporations

  • If, in contrast to this simple differentiation, one speaks of several companies, it is quite possible that several different companies merge to form a large group.
  • A connection between two companies that jointly manage one company is also conceivable. This is then a joint venture.
  • Note that from a legal point of view, companies are commercial names for merchants. This is possible for both sole traders and legal entities.
  • This term is in Employment Law not relevant, so it is better if you replace it with the word “operation”.

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