Job Council News

The Differences Between a DCC and a Corporation

A business is defined as any entity or an entity organized for the purpose of conducting commercial, industrial, or financial activities. The term can include any type of company. Businesses may be either for-profit or non-profitable organizations that conduct business in pursuit of profit, to meet a social purpose or further an educational objective. Examples of a for-profit business are labor organizations, schools or hospitals. Examples of businesses that are not for-profits include publishing houses, charities, publishing companies, hotels and motels, restaurants, shopping centers, real estate firms and developers.


For-Profit Companies: Learning Objectives and Key Takeaways Key points for understanding corporate social responsibility practices include identifying your business as a social enterprise. Your business should be committed to building its community in place of other external actors. This includes supporting key stakeholders, such as consumers, employees, suppliers and the local economy. As a for-profit company you should also commit to meeting your carbon footprint, thereby improving the world’s efforts to combat climate change. A for-profit business can also promote sustainability, transparency and good governance through its learning objectives and key takeaways.

Non-Profit Corporations: Learning Objectives and Key Takeaways There are two distinct categories of organizations that are often used as for-profit and non-Profit businesses: the government and nonprofits. Government institutions are often used to provide goods and services to citizens or other external stakeholders at lower costs than those found in private sector profit-making businesses. Non-Profit businesses often use their revenues to help develop low-income communities and areas, support causes and programs that benefit the community, and create jobs.

Types of Corporations: Two major types of corporations in most countries around the world include: C corporations and DCC or D Virgin Corporation. A C corporation is normally a publicly traded company composed of a diverse array of stock shares with voting rights. A DCC is not formally registered as a corporation, but receives the same tax advantages as a corporation. Each type of corporation has different ownership structure and management structures. DCCs are overseen by an international governing body similar to the IRS. DCCs have limited liability protection from personal bankruptcy proceedings unlike C corporations.

Types of Shareholders: Corporations are generally classified as either individual shareholders or institutional shareholders. Individual shareholders are allowed to control the ownership of the corporation through a basic contractual commitment to act in the ways recommended by the shareholders. Institutional shareholders are pools of money from various sources that are invested in the corporation. They have greater voting rights and are subject to double taxation.

DCCs: DCCs are a newer entrant in the business world, having first entered during the 90s when international telecoms companies went public. A DCC is basically a corporation that has separate legal entity status from its owners. A DCC can be incorporated offshore as a limited liability corporation and will enjoy all the benefits of being a corporation, such as limited liability. However, it will be required to disclose its shareholders information and be open about its affairs in the corporate document. Some DCCs have been criticized for having this structure because they do not provide sufficient protection to shareholders. Other countries have avoided putting corporations under DCC registration in order to maintain their own personal financial accountability.