{"id":9190,"date":"2022-02-10T14:42:31","date_gmt":"2022-02-10T14:42:31","guid":{"rendered":"https:\/\/martinezcaballeroabogados.com\/do-you-want-to-create-a-company-but-do-not-know-which-is-the-most-beneficial-business-form-for-you\/"},"modified":"2023-07-14T08:27:07","modified_gmt":"2023-07-14T08:27:07","slug":"do-you-want-to-create-a-company-but-do-not-know-which-is-the-most-beneficial-business-form-for-you","status":"publish","type":"post","link":"https:\/\/martinezcaballeroabogados.com\/en\/do-you-want-to-create-a-company-but-do-not-know-which-is-the-most-beneficial-business-form-for-you\/","title":{"rendered":"Do you want to create a company but do not know which is the most beneficial business form for you?"},"content":{"rendered":"\t\t
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The<\/span>Collective Partnership<\/b> (SC) and the<\/span>Limited Partnership<\/b> (SL) They are two very different figures for the constitution of a company. In this article we will explain the main characteristics of each of them and their most notable advantages and disadvantages. <\/span><\/p>\n

What is a General Partnership and a Limited Partnership? <\/b> <\/span><\/p>\n

The <\/span>Limited society<\/b> (SL), also known as <\/span>Limited Liability Company<\/b> (SRL) is a type of Mercantile Company that is regulated in the Capital Companies Law and is the most commonly used among Spanish companies, since the liability of the capital contributed by the partners is limited. <\/span><\/p>\n

The<\/span>characteristics<\/b>that are more relevant of the Limited Companies are: <\/span> <\/p>\n

    \n
  • The<\/span>minimum number of partners<\/b> for the constitution of a SL it is a single person and there is no maximum limit, when it is constituted with a single partner the name of Unipersonal Limited Company will be adopted. These can be both physical or legal persons.

    <\/span><\/li>\n
  • The<\/span>liability of the partners<\/b>is joint and several between them and is limited to the capital contributed, it is an excellent way to protect their assets since they are not liable for the company’s debts with their personal assets.

    <\/span><\/li>\n
  • The<\/span>share capital<\/b>must be greater than \u20ac3,000 as an essential requirement to establish the company, which can be made up of monetary contributions (monetary) or in kind (for example, a property or machinery)

    <\/span> <\/li>\n
  • The<\/span>contributions of the partners<\/b>are divided into social shares, the more shares a partner has, the greater his control over the company.

    <\/span> <\/li>\n
  • The<\/span>company name<\/b>will contain the name of the company that cannot coincide with any other name already registered by another company and followed by the initials S.L. or S.R.L., in addition, it must be registered in the Mercantile Registry

    <\/span> <\/li>\n
  • The<\/span>registered office<\/b>of the Limited Company will be the place where the company is located

    <\/span> <\/li>\n
  • The<\/span>corporate purpose<\/b>must be defined, which is the activity or activities to which the company is going to engage. <\/span> <\/li>\n<\/ul>\n

    The<\/span>Collective Society<\/b> (SC), is a commercial company of a personal nature that develops a commercial activity under a company name. All partners are personally, unlimitedly and jointly liable for company debts. <\/span><\/p>\n

    Therefore, the partners undertake to respond on behalf of the company, of the debts generated by the company with its assets in accordance with the agreement in the first instance. <\/span><\/p>\n

    The<\/span>characteristics<\/b>that are more relevant of Collective Societies are:<\/span> <\/p>\n

      \n
    • The<\/span>minimum number of partners<\/b>for the constitution of a SC is two people and there is no maximum limit.

      <\/span> <\/li>\n
    • The<\/span>liability of the partners<\/b>is personal and unlimited, this means that the partners agree to participate in the proportion established in the enjoyment of rights and in the fulfillment of obligations.

      <\/span> <\/li>\n
    • The<\/span>share capital<\/b> there is no legal minimum as it is a personalist type society. The contributions of the partners can be financial or in the form of work.

      <\/span><\/li>\n
    • The<\/span>contributions of the partners<\/b>are divided into parts of social interest of equal value for all without taking into account the percentage contributed by each one or if it was in capital or work.

      <\/span> <\/li>\n
    • The<\/span>company name<\/b> The name of all the partners, of some of them or of only one, will include the name of persons who are not partners and in the event that it is included, this person will be jointly and severally liable for the debts of the company. The name must be followed by the initials S.C. or S.R.C.

      <\/span><\/li>\n
    • The<\/span>registered office<\/b>of the Collective Society will be the place where the company is located.

      <\/span> <\/li>\n
    • The<\/span>corporate purpose<\/b>must be defined by the commercial activity that the company will develop. <\/span> <\/li>\n<\/ul>\n

      What are its main advantages and disadvantages? <\/b><\/p>\n

      The<\/span>main advantages<\/b> of the Limited Company is that it is a very good option for small and medium-sized companies, they have a more flexible legal regime, social responsibility is limited to capital contributions and is a minimum of \u20ac3,000, the company name is free as long as when it does not coincide with another company name already registered and there is no minimum or maximum percentage of contribution per partner. <\/span><\/p>\n

      On the other hand, the<\/span>disadvantages<\/b>more important are that the guarantee of the corporate creditors is limited to the corporate assets, there is no freedom to transfer shares and they cannot be listed on the Stock Market and the partners are always identifiable. <\/span> <\/p>\n

      The <\/span>main advantages<\/b> of the Collective Society is that the partners participate directly in the benefits, the minimum for the constitution is two partners, the possibility of raising a greater capital in the company is allowed and each partner has the right to vote, except if what has been agreed contrary.

      <\/span>On the other hand, its <\/span>disadvantages <\/b>are the unlimited, joint and subsidiary liability of the partners, for new partners to enter the acceptance of all the participants is needed, the company is dissolved in the event of the death of one of the partners and each one of the partners depends on the acts of others.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

      TheCollective Partnership (SC) and theLimited Partnership (SL) They are two very different figures for the constitution of a company. In this article we will explain the main characteristics of each of them and their most notable advantages and disadvantages. What is a General Partnership and a Limited Partnership? The Limited society (SL), also known as Limited Liability Company (SRL) is a type of Mercantile Company that is regulated in the Capital Companies Law and is the most commonly used among…<\/p>\n","protected":false},"author":1,"featured_media":8100,"comment_status":"closed","ping_status":"open","sticky":false,"template":"elementor_theme","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_joinchat":[],"footnotes":""},"categories":[281,280],"tags":[],"class_list":["post-9190","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-companies-and-freelancers","category-news-and-current-events"],"yoast_head":"\nSubsidy for domestic workers - Martinez Caballero Abogados<\/title>\n<meta name=\"description\" content=\"All about the subsidy for domestic workers and workers with a temporary contract due to the situation 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