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TYPES OF COMPANY
PRINCIPAL CHARACTERISTICS: COMPARISON
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COMPANY NAME
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SOCIEDAD LIMITADA (S.L.) |
Must be different from any other company (certified by the Central Mercantile Registry). |
EMPRESARIO INDIVIDUAL |
The name of the owner of the business. |
SOCIEDAD LIMITADA NUEVA EMPRESA (S.L.N.E.) |
The name of the owner of the business plus the code assigned by the Administration. |
SOCIEDAD ANÓNIMA (S.A.) |
Must be different from any other company (certified by the Central Mercantile Registry). |
SOCIEDAD LIMITADA LABORAL (S.L.L.) |
Must be different from any other company (certified by the Central Mercantile Registry). |
SOCIEDAD ANÓNIMA LABORAL (S.A.L.) |
Must be different from any other company (certified by the Central Mercantile Registry). |
SOCIEDAD COOPERATIVA (S.COOP.) |
Must be different from any other company (certified by the Central Mercantile Registry). |
COMUNIDAD DE BIENES |
Unregulated, any name may be used. |
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CHARACTER
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SOCIEDAD LIMITADA (S.L.) |
Mercantile. |
EMPRESARIO INDIVIDUAL |
Company run by an individual. |
SOCIEDAD LIMITADA NUEVA EMPRESA (S.L.N.E.) |
Mercantile. |
SOCIEDAD ANÓNIMA (S.A.) |
Mercantile. |
SOCIEDAD LIMITADA LABORAL (S.L.L.) |
Laboral. |
SOCIEDAD ANÓNIMA LABORAL (S.A.L.) |
Laboral. |
SOCIEDAD COOPERATIVA (S.COOP.) |
Specific designation. |
COMUNIDAD DE BIENES |
Civil. |
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NUMBER OF SHAREHOLDERS
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SOCIEDAD LIMITADA (S.L.) |
Minimum one shareholder (S.L. Unipersonal). |
EMPRESARIO INDIVIDUAL |
1 |
SOCIEDAD LIMITADA NUEVA EMPRESA (S.L.N.E.) |
Minimum one shareholder, maximum 5 shareholders (shareholders must be individuals, not companies). The same person may not be a shareholder of more than one S.L.N.E. |
SOCIEDAD ANÓNIMA (S.A.) |
Minimum one shareholder (S.A. Unipersonal). |
SOCIEDAD LIMITADA LABORAL (S.L.L.) |
Minimum three shareholders (no single shareholder may own shares representing more than 1/3 of the share capital). |
SOCIEDAD ANÓNIMA LABORAL (S.A.L.) |
Minimum three shareholders (no single shareholder may own shares representing more than 1/3 of the share capital). |
SOCIEDAD COOPERATIVA (S.COOP.) |
Minimum three shareholders in first grade co-operatives and two in the second or last grade: the legislation may vary according to the autonomous community. |
COMUNIDAD DE BIENES |
There is no legal minimum number of shareholders. |
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SHARE CAPITAL
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SOCIEDAD LIMITADA (S.L.) |
Minimum 3.005,06 €. |
EMPRESARIO INDIVIDUAL |
There is no minimum. |
SOCIEDAD LIMITADA NUEVA EMPRESA (S.L.N.E.) |
Minimum 3.012 € and maximum 120.202 €. |
SOCIEDAD ANÓNIMA (S.A.) |
Minimum 60.101,21 €. |
SOCIEDAD LIMITADA LABORAL (S.L.L.) |
Minimum 3.005,06 € ( 51% of the share capital must belong to the working shareholders). |
SOCIEDAD ANÓNIMA LABORAL (S.A.L.) |
Minimum 60.101,21 € (51% of the share capital must belong to the working shareholders). |
SOCIEDAD COOPERATIVA (S.COOP.) |
Variable, fixed in the company statutes. |
COMUNIDAD DE BIENES |
No initial minimum. A shareholder may contribute only goods, but may not contribute only money or work. |
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LEGAL STATUS
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SOCIEDAD LIMITADA (S.L.) |
Has own legal status. |
EMPRESARIO INDIVIDUAL |
Legal status of the owner. |
SOCIEDAD LIMITADA NUEVA EMPRESA (S.L.N.E.) |
Has own legal status. |
SOCIEDAD ANÓNIMA (S.A.) |
Has own legal status. |
SOCIEDAD LIMITADA LABORAL (S.L.L.) |
Has own legal status. |
SOCIEDAD ANÓNIMA LABORAL (S.A.L.) |
Has own legal status. |
SOCIEDAD COOPERATIVA (S.COOP.) |
Has own legal status. |
COMUNIDAD DE BIENES |
Without legal status, but with capacity to act in the legal system. |
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INITIAL SHARE CAPITAL
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SOCIEDAD LIMITADA (S.L.) |
The full amount of the share capital must be paid out, either in cash or in goods. The capital is divided into nominal shares nominativas. |
EMPRESARIO INDIVIDUAL |
No limit. |
SOCIEDAD LIMITADA NUEVA EMPRESA (S.L.N.E.) |
The full amount of the share capital must be paid out in cash. |
SOCIEDAD ANÓNIMA (S.A.) |
The share capital must be fully subscribed and at least 25% paid out in cash or goods. The capital is divided into shares. |
SOCIEDAD LIMITADA LABORAL (S.L.L.) |
The full amount of the share capital must be paid out. The capital is divided in to shares. A minimum of 51% must be held by employees. |
SOCIEDAD ANÓNIMA LABORAL (S.A.L.) |
The share capital must be fully subscribed and at least 25% paid out. The capital is divided into shares. A minimum of 51% must be held by employees. |
SOCIEDAD COOPERATIVA (S.COOP.) |
According to the statutes. Can be made up in cash or goods. Obligatory and voluntary. |
COMUNIDAD DE BIENES |
There is neither a minimum nor a maximum. |
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THIRD PARTY LIABILITY
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SOCIEDAD LIMITADA (S.L.) |
Limited to the share capital. |
EMPRESARIO INDIVIDUAL |
Unlimited. Liable for all personal wealth. |
SOCIEDAD LIMITADA NUEVA EMPRESA (S.L.N.E.) |
Limited to the share capital. |
SOCIEDAD ANÓNIMA (S.A.) |
Limited to the share capital. |
SOCIEDAD LIMITADA LABORAL (S.L.L.) |
Limited to the share capital. |
SOCIEDAD ANÓNIMA LABORAL (S.A.L.) |
Limited to the share capital. |
SOCIEDAD COOPERATIVA (S.COOP.) |
Limited to the share capital. |
COMUNIDAD DE BIENES |
The members of the commune will be liable for all their personal goods, jointly and individually. |
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DIRECT TAX LIABILITY
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SOCIEDAD LIMITADA (S.L.) |
Company Tax. |
EMPRESARIO INDIVIDUAL |
Personal income Tax. |
SOCIEDAD LIMITADA NUEVA EMPRESA (S.L.N.E.) |
Company Tax. |
SOCIEDAD ANÓNIMA (S.A.) |
Company Tax. |
SOCIEDAD LIMITADA LABORAL (S.L.L.) |
Company Tax. |
SOCIEDAD ANÓNIMA LABORAL (S.A.L.) |
Company Tax. |
SOCIEDAD COOPERATIVA (S.COOP.) |
Company Tax. |
COMUNIDAD DE BIENES |
Personal Income Tax: each member of the community must make his tax declaration as an individual. |
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ADVANTAGES
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SOCIEDAD LIMITADA (S.L.) |
- Limited liability.
- Individuals may be shareholders.
- May have a single shareholder (S.L.Unipersonal).
- Legislation is less strict than for S.A.s
- Most often chosen.
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EMPRESARIO INDIVIDUAL |
- Less bureaucracy
- There may be certain fiscal advantages ('régimen simplificado' or 'recargo de equivalencia del IVA').
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SOCIEDAD LIMITADA NUEVA EMPRESA (S.L.N.E.) |
- Limited liability.
- Certain financial advantages in the year following the year of incorporation.
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SOCIEDAD ANÓNIMA (S.A.) |
- Limited liability.
- Individuals may be shareholders.
- Shareholders may be transferred.
- Shares may be freely transferred.
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SOCIEDAD LIMITADA LABORAL (S.L.L.) |
- Limited liability.
- Fiscal advantages with regard to social security when following certain regulations.
- The working shareholders control the company.
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SOCIEDAD ANÓNIMA LABORAL (S.A.L.) |
- Limited liability.
- Fiscal advantages with regard to social security when following certain regulations.
- The working shareholders control the company.
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SOCIEDAD COOPERATIVA (S.COOP.) |
- Special fiscal status concerning company tax.
- Fiscal exemptions and advantages.
- Shareholders may join and leave voluntarily.
- The objective is the common good, not profit.
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COMUNIDAD DE BIENES |
- Easier incorporation (a public title deed is only required when property is involved).
- Voluntary membership.
- No minimum initial capital. |
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DISADVANTAGES
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SOCIEDAD LIMITADA (S.L.) |
- May not be involved in certain businesses, such as banks, insurance companies, etc.
- Incorporation takes between 50 and 60 days.
- In practice it is the most advantageous way to set up a business.
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EMPRESARIO INDIVIDUAL |
- Liable for personal assets (the spouse as well) to cover company debt.
- The higher the profit, the higher the tax band.
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SOCIEDAD LIMITADA NUEVA EMPRESA (S.L.N.E.) |
- The minimum share capital must be in cash.
- Shareholders must be individuals.
- The company name will include the name of one of the shareholders.
- The company business is generic, therefore is limited to certain activities.
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SOCIEDAD ANÓNIMA (S.A.) |
- The organisation is more complex and is only recommended for high volume companies. |
SOCIEDAD LIMITADA LABORAL (S.L.L.) |
- The existence of two types of shareholders (capital shareholders and working shareholders) can cause difficulties when taking decisions.
- The shares may not be freely transferred.
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SOCIEDAD ANÓNIMA LABORAL (S.A.L.) |
- The existence of two types of shareholders (capital shareholders and working shareholders) can cause difficulties when taking decisions.
- The shares may not be freely transferred.
- The number of employees who are not shareholders and who have indefinite work contracts is stipulated.
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SOCIEDAD COOPERATIVA (S.COOP.) |
- Operative difficulties when taking decisions.
- Limits the number of employees who are not shareholders.
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COMUNIDAD DE BIENES |
- In the case of third party liability, the community will respond with all of its goods and, should this not be sufficient , the members with their personal wealth.
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