▷ Asiento constitucion sociedad limitada

incorporation of the limited liability company

The characteristic of the simultaneous incorporation is that it is carried out in a single act by agreement between the founders of the company. Thus, once the entry is made, the obligatory disbursement must be made in the Limited Liability Companies of the form:

As we have seen in the second entry, when the inscription of the capital in the Mercantile Registry takes place is when the account of Social Capital definitively appears. It is no less true that in many cases the accounting entry can be made directly to the capital stock without the need to go through the account.

the expenses of incorporation and capital increase will be charged directly to the net worth of the company without going through the aforementioned profit and loss account. These expenses will appear in the statement of changes in total equity, forming part of the total changes in equity for the year.

This type of expense will be deductible for corporate income tax purposes and, therefore, at the end of the fiscal year, the reserves account must be credited for the tax expense related to these expenses, in the following manner: (tax rate x amount of reserves)

accounting entries in company accounting

With this article you will have it very clear: we will see the account of the share capital and the other specific ones that contains the General Accounting Plan, how and when each one is used, how the accounting entries of incorporation of society are made, the entry of contribution of partners, the increase of capital….

A part of that reality (and fundamental in addition) is the social capital, reason why any variation that takes place in it must be registered in the accounting and these variations will take place in some of the following cases:

Once you know how the incorporation of a company is recorded in the accounting the other operations related to the capital stock (its increase and decrease or the liquidation of the company) are going to be easy for you, because the accounting principles and accounts used are practically the same.

[Note that in the cases of successive founding or in which the total amount of the securities is not paid up, it will be necessary to reflect these facts using the corresponding accounting accounts: Account 103 “Members for uncalled disbursements”, Account 104 “Members for outstanding non-cash contributions”, Account 192 “Share subscribers”, etc.]

accounting entries for the incorporation of a corporation

If you are in charge of the accounting of a newly created company, one of the first accounting entries you will have to make is the accounting of the incorporation of the company.

The entries for the incorporation of a limited liability company are less complex than those relating to the incorporation of a public limited company. This, among other reasons, is due to the fact that in the case of limited liability companies, the capital must be fully paid up at the time of the incorporation deed.

This account, in the case of companies that have a mercantile form, includes the capital recorded in the deed, except when, in view of the economic characteristics of the issue, it must be recorded as a financial liability.

Until the company is registered in the Register and in the case of public limited companies, limited liability companies and limited partnerships by shares, the issue and subscription or assumption, respectively, of shares or participations, will be recorded in accounts of subgroup 19.

incorporation of a company

From the moment in which the deed of incorporation of our company is signed at the notary’s office, the need to make the first accounting entries that record its initial movements begins.

In the case of a limited company, it is obligatory to pay the total of the social participations on the day of the incorporation of the company. If it is a corporation, at least 25% of the total shares must be paid up on incorporation and 100% subscribed by the partners.

The incorporation expenses are charged to the voluntary reserves account since this is established in the General Accounting Plan: “the incorporation and capital increase expenses will be charged directly to the company’s net worth without going through the Profit and Loss account”. For example: In the invoice of the notary we are charged 100 euros of taxable base, 18 of VAT and there are 15 of IRPF retentions. Entries