Everything you need to know about the Limited Company, the most common legal ...

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hat is a limited society? We start the topic with a definition: The Limited Liability Company (SRL) or Sociedad Limitada (SL) is a type of commercial company, provided for in Spanish regulations, in which liability is limited to the contributed capital (capital company), and therefore, in the If debts are incurred, they are not responded to with the partners' personal assets. The law that regulates the Limited Company is found in the consolidated text of the Capital Companies Law , approved by Royal Legislative Decree 1/2010, of July 2. Limited companies are commercial companies, therefore they will always have a profit motive. By definition, non-profit limited companies cannot exist.limited company meaning Characteristics of a Limited Company The best way to understand what a Limited Company is like is to study what characterizes it point by point. We will see everything related to capital, liability of partners, participations, taxes, fiscal obligations and administrative bodies. 1. Share capital The minimum share capital necessary to establish a Limited Company is 3,000 euros . It is possible to start a Limited Company with less than this amount, but we will see this later in this article, when we explain the types of limited companies. The capital contributed to establish the company can be monetary or non-monetary. 2. Participations Talking about the capital of a Limited Company means understanding the concept of social participation.
  
Social shares are the parts into which the capital of the company is divided . According to current legislation, shares have a nominal value, are cumulative, indivisible and must be numbered. There are other characteristics of the shares , which are the following: As they are cumulative, a single partner can have them all. Another characteristic mentioned is indivisibility, which Country Email List  means that the shares cannot be divided into fractions. Nor can the number of partners increase unlimitedly regardless of the increase in the company's capital. The shares attribute the same rights to all partners except for some exceptions established by law. The division of capital into limited company shares does not allow listing on the stock market . You can only list shares on the stock market and to have them the company must be a Public Limited Company. 3. Responsibility A Limited Company is also called a Limited Liability Company .




This name perfectly reflects one of the most important characteristics of this legal form: that is, the liability of the partners is limited to the capital contributed. Therefore, in the event of a debt, the company established as a Limited Company will respond with its own capital. No partner will face a company debt with his personal assets. 4. Number of partners Limited companies do not have a limited number of partners . For a company to have the acronym SL in its name, the company must have a minimum of two partners, but there are also limited companies with a single partner. They are called single-member limited companies and their name bears the acronym SLU. The partners participate in decision-making, in the distribution of profits, in the resulting assets if the company is liquidated and can be elected as administrators. Likewise, some types of limited companies have a maximum number of partners, but we will see this in more detail when we present the types of Limited Company.