▷ Sociedad anonima vs sociedad limitada

Capital companies law

An entrepreneur or self-employed person who decides to create a public or private limited company must wait at least two months before it is incorporated and can start operating, as long as it is done by the traditional method, not telematically, confirms Salvador Guillén, head of Gedesco’s Legal Department.

Before going to the notary to sign the deed of incorporation, it is necessary to apply for the name in the Mercantile Registry by means of a form, which is held in reserve for three months, until the company is incorporated. If it is not constituted in this time the application expires.

After opening a bank account and having deposited the capital by the partners, the deed of incorporation must be drawn up, which must include the corporate name, activity to be carried out, and bylaws. This document must be signed before a notary. In four or five days, by telematic way, the formalities are made before the Treasury – payment of taxes – and it will be registered in the Mercantile Registry.

Wikipedia

with legal personality, but its capital is divided into shares. These shares may have different par values or have different privileges attached to them, and may be freely transferable. In addition, the shareholders are not liable with their personal assets for the debts of the company, only up to the amount of capital they have contributed.

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The initial capital of the S.A. is 60,000. In the SL the initial capital can be subscribed and fully paid up at the time of incorporation, and can be in cash, goods or rights, while in an S.A. only 25% of the capital must be subscribed and paid up.

Corporations in the united states

Many people get confused about the differences between a corporation and a limited liability company, especially when starting a business or creating a company. And it is normal to have doubts, since both legal forms share some similarities and are quite well known in the business world.

It is characterized by the fact that it divides the capital of the commercial company into shares, with which the partners are only responsible for their proportional part. Thus, companies that accumulate large amounts of capital benefit from a lower financial risk and the contribution of many shareholders.

Another important aspect is that it has a personal organizational structure. That is to say, a corporation can act as a legal person and, therefore, be the holder of assets and rights or commit and contract as any natural person. However, it will need an administrator or an administrative body to represent it.

These two mercantile companies, although they share practically the same obligations in relation to the General Accounting Plan (both are taxed by the Corporate Tax), they do present important differences.

Difference between action and participation

In today’s Economics Concepts section we are going to analyze what two of the most popular legal forms in the business world are and how they differ. We are referring to Corporations (SA) and Limited Liability Companies (SL).

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A peculiarity of this type of companies, mainly in the case of the Corporations, is that the management does not usually fall on its partners, but it is a professional entrepreneur who performs such work. The figure of the “professional entrepreneur”, who assumes exclusively professional responsibility and is not the owner of the means of production, is therefore clearly highlighted in this type of company.