There are numerous types of company available for creation. The most suitable type to choose when deciding to create a company depends mostly on three points.
Points influencing company types
Liability
A company can be either of limited or unlimited liability. Limited liability means that the liability does not exceed the investment made in the company, which means that even if the company goes bankrupt or has remaining debt, the partner does not have to comply to more than the amount invested (Investopedia). However, in unlimited liability company owners are equally responsible for debt independently of the amount invested.
Number of partners
Depending on the type of company that wants to be created, it is necessary to have a minimum number of partners: from 0 to more than 3.
Social Capital
Some company types require a minimum social capital, while other have no minimum.
Company types
Once understood the main points that can influence on the decision as to what type of company form, it is time to take a look at the main company types that can be found on the Spanish legal system (Ministerio de Economía, Industria y Competitividad):
Type of Company
Number of partners
Social Capital
Liability
Individual
1
There is no legal minimum
The partner is responsible with all his property
Limited Liability Entrepreneur
1
There is no legal minimum
Unlimited with exceptions
Community of property/goods
At least 2
There is no legal minimum
The partner is responsible with all his property
Civil Society/partnership
At least 2
There is no legal minimum
The partner is responsible with all his property
Collective society
At least 2
There is no legal minimum
The partner is responsible with all his property
Limited Simple Partnership
At least 2
There is no legal minimum
The partner is responsible with all his property
Limited Liability Society
At least 1
At least 3.000 euros
Limited to the agreed/ included capital for the society
Limited Liability Society of Successive Formation
At least 1
There is no legal minimum
Limited to the agreed/ included capital for the society
New Public Limited Liability Society
At least 1
Maximum 5
At least 3.000 Maximum 120.000
Limited to the agreed/ included capital for the society
Limited Company
At least 1
At least 60.000 euros
Limited to the agreed/ included capital for the society
Limited Partnership with a share capital
At least 2
At least 60.000 euros
The partner is responsible with all his property
Limited Labour Society
At least 2
At least 3.000 euros
Limited to the agreed/ included capital for the society
Labour Limited Company
At least 2
At least 60.000 euros
Limited to the agreed/ included capital for the society
Cooperative
1st Degree cooperatives: At least 3
2nd Degree Cooperatives: 2 cooperatives
At least what is agreed on the statutes
Limited to the agreed/ included capital for the society
Associated Workers Cooperative
At least 3
At least what is agreed on the statutes
Limited to the agreed/ included capital for the society
Professional Societies
At least 1
Depends on the social form adopted
Limited to the agreed/ included capital for the society
Agrarian Transformation Company
At least 3
There is no legal minimum
The partner is responsible with all his property
Mutual Guarantee Association
At least 150 participant partners
At least 10.000.000 euros
Limited to the agreed/ included capital for the society
Venture Capital Entity
At least 3 members on the Administration Council
Venture Capital Society: at least 1.200.000 €. Venture Capital Funds: at least 1.650.000 €
Limited to the agreed/ included capital for the society
There are numerous types of company available for creation. The most suitable type to choose when deciding to create a company depends mostly on three points.
Points influencing company types
Liability
A company can be either of limited or unlimited liability. Limited liability means that the liability does not exceed the investment made in the company, which means that even if the company goes bankrupt or has remaining debt, the partner does not have to comply to more than the amount invested (Investopedia). However, in unlimited liability company owners are equally responsible for debt independently of the amount invested.
Number of partners
Depending on the type of company that wants to be created, it is necessary to have a minimum number of partners: from 0 to more than 3.
Social Capital
Some company types require a minimum social capital, while other have no minimum.
Company types
Once understood the main points that can influence on the decision as to what type of company form, it is time to take a look at the main company types that can be found on the Spanish legal system (Ministerio de Economía, Industria y Competitividad):
Maximum 5
2nd Degree Cooperatives: 2 cooperatives
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