What type of business entity best suits your needs?

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When starting a business, several important decisions must be made. One of them is the most suitable corporate form. For this, it is important to know which type of business company is most suitable according to:

Your needs
Your goals
The company's objectives .
We analyze its characteristics so that you can choose the most suitable one.

Commercial company: what are there?
The limited liability company
This is the most common type of company in Spain for decades. This is because entrepreneurs do not have to personally respond with their assets for the company's debts in the event that they france whatsapp lead were acquired, the liability is limited to the capital contributed and it is a form in accordance with the usual requirements of aSMEas well as the capital requirements, which are much lower than those of a public limited company.

In this case, the liability of the partners is limited and the share capital is divided into shares . To set up this type of business company, a minimum capital requirement of 3,000 euros is required , which must be paid in full when signing the public deed. The minimum number of partners for its incorporation is one.

commercial company

The corporation
This is the second most commonly used type of commercial company in our country. It is characterized by the fact that the capital is divided into shares that can be freely transferred. It is precisely the opposite of a limited company, as well as the large number of partners that can participate in it. Unlike the previous case, in which a large number of people do not usually participate.

A minimum capital of 60 thousand euros is required for its incorporation, and it is necessary to pay 25% at the time of the public deed. The minimum number of people for its incorporation is also one.

The general partnership
It is a type of commercial company ofpersonal character, in which the partners play a very important role. This is because they not only invest capital but also contribute their work and manage the company directly. For this reason, the status of partner is not freely transferred in this type of commercial company, and the figure of the industrial partner is also provided for, whose only role is his work.

The liability of the industrial partner is unlimited. They are personally liable for the company's losses. The beginnings of this type of company date back to the Middle Ages, when "merchant companies" or "societas mercatorum" were in operation. Today, their use is practically residual.

As regards the incorporation of this type of business company, no minimum capital is required. Its name must include the name of at least one of the partners plus the words “and Company”, without being able to add the name of another person not related to it. The difference also lies in the fact that it can be formed by two people.