Types of mercantile companies in Spain

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It is very common that today we have in mind to open a business, or to formalize a company in conjunction with other business partners. But to formalize this type of business we need to make an alliance, but What is an association? And what types of societies exist? In this post vamos a dar respuesta a estas preguntas, para que decidas cuál es la mejor opción según tus necesidades.

The first thing to explain is that they exist 4 company opportunities in SpainThe first company that we will analyze will be the limited company, then we will analyze the limited company, as a third we will analyze the collective partnership, and finally we will talk about the limited partnership, also known as limited partnership.

Anonymous society

The joint-stock company Es uno de los más utilizados dentro de España, y su principal característica es que el capital de la compañía está dividido en acciones, las cuales disponen valor individual, pudiendo al mismo tiempo ser transmitidas libremente entre los titulares de dichas acciones, por lo que en el futuro, el número de persons que pueden participar en esta compañía es prácticamente ilimitado.

Advantages of the Stock Company

The main advantage of this type of corporation It is the fact that there may be freedom to carry out transactions with the shares that make up the company. Which in the long term will allow the company to receive more investors, and also to be able to even be listed on the stock exchanges.

Disadvantages of the corporation

The disadvantage of this type of corporation It is the complexity that it has to be able to consolidate before the authorities, since it needs a lot of paperwork. And another disadvantage is that you will not be able to control who acquires the shares of the company, this is very important if you plan to maintain a good management of the company, on the other hand, it also needs a much more solid administrative structure. due to its own complexity. management of shares, and the issues that this implies, such as the distribution of profits.

Another point to consider as corporation requirement Is that a minimum capital of 60 thousand euros is needed to be able to complete the process, at the same time considering that the 25% of said amount must be disbursed at the time of carrying out the process of the public deed.

Undoubtedly, it is a type of company that offers many advantages if our plan is to grow the company, however, we must consider that the system must be robust enough to be able to carry out all the management.

Limited society

Limited liability company It is the type of partnership preferred by many, and the advantages that this type of partnership offers go hand in hand with the needs of many of the existing companies. One of its main characteristics is that the investor's liability is limited to the capital he has contributed, which will give him a stake in the company.

The most interesting thing about this type of society is that the company is recognized as a separate entity from the entrepreneurs, so the debts and liabilities of the company are a separate matter from the equity of those who have participation in it.

Advantages of limited partnerships

The first advantage of this type of society is that the minimum capital Para poder llevar a término el procedimiento de creación de esta compañía, son 3.000 euros, una cantidad verdaderamente mínima. Al mismo tiempo de esto, el requerimiento mínimo de membership es de solo 1 persona.

Another of the advantages of this type of society Is that, if there are losses for the company, it is not necessary for the entrepreneurs to respond with their assets, which allows greater certainty to the financial management of both the company and the entrepreneurs that make it up, reducing the risk that the investment would imply. in this company.

Another of the the advantages are administrative, Well, both the procedures and the requirements are really very simple and fast, so it is quite convenient if you are looking for us to start operating quickly.

En el tema fiscal, las ventanas que se pueden presentar son bastantes, primero tenemos que decir que los impuestos que paga son más bajos que los de un empleado autónomo, por lo que este ya es un buen comienzo, pero además es el El salario de la propia compañía se puede deducir como gasto de la compañía, lo que hace que be económicamente muy rentable tener una sociedad anónima.

Disadvantages of limited partnerships

The main drawback of this type of company is that if the company wants to grow and request more capital from more investors, this procedure is not so simple. So, if this is your plan, the best thing to do is to set up a corporation.

Collective society

Does a company name that includes a personal name followed by "and company" sound familiar to you? Because the companies that have this type of name are a collective society.

The main feature of this kind of society it is that it is a personalist mercantile society. This means that the partners of the company will not only make monetary contributions to the company, but they will also have to perform administrative tasks and contribute intellectually to the achievement of the goals.

Due to the participation of the partners themselves, the status of "partner" is not transmitted in a simple way, but requires several agreements and a series of procedures.

In spite of everything, and as we will see later, it has the characteristic that the the responsibility of the partners is unlimited, which in certain circumstances can compromise your assets.

Advantages of the partnership

The main advantage of this type of association is that the partners are mostly committed to contributing not only the capital for the operation of the company, but also to the direct management and administration of the company's resources.

Another advantage of this partnership is that there is no minimum capital for the unification of a company of this type. The procedures are also simple, fast and functional.

Due to the type of company, it is feasible and simple to control the access of new partners, which enables greater control over those who have direct interference in the company's performance.

It is important to note that, although it has many advantages, this type of society is not very popular today.

Disadvantages of the partnership

The main disadvantage, and the most notorious, is that it is an unlimited liability company, which means that the partners not only benefit from the company's profits, but also have the responsibility to respond with their own assets to a bad time for the company.

This point of the unlimited liability It is very important to consider it, because although the advantages are notorious in this type of company, a certain margin of certainty of the company must be considered, since specifying a company that has high opportunities for losses, can put our equity at risk as partners. assets.

Limited liability company

The The limited partnership is a combination of general partnerships and limited partnerships, and has several advantages that we can consider very important when choosing the type of society we want to form. At the time of making this type of association, 2 types of partners can be identified.

The first group of partners that we can identify are those who have unlimited liabilityIn other words, they respond with their assets to the performance of the company, and on the other hand they have direct responsibility for carrying out the essential actions to be able to manage the company's resources.

As a second type of partner, we can find those whose liability is limited to the proportion of capital contributed to the company, in other words, their role is that of limited liability partners.

Limited partnership advantage

The main advantage of this type of society is that no minimum capital required in order to carry out the constitution of the company. On the other hand, we find the advantage offered by public limited companies, since the incorporation of new partners is a fairly easy procedure, as long as it is the part of the company that is under this regime.

By allowing the entry of more capital and more partners, the growth of the company can be much greater than in other types of society, and this without the need for new investors to actively participate in the management of the company.

Disadvantages of limited partnership

There are two main disadvantages, the first is that the structure, being based on two different types of company, is considerably complex, so the management system needs to be robust to be able to manage two types of partners in the same company.

The second disadvantage is that partners who are not under the limited partnership They do not have the right to vote in company decisions, since administration tasks are delegated only to limited partners. At the same time, we must consider that the complexity to be able to access within the limited partners is quite high once the company is already established.