Understanding the Spanish Limited Company (SL): Formation & Management
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Understanding the Spanish Limited Company (SL)
Legal Framework and Definition
- The Limited Company (SL) is primarily regulated by Law 2/1995 of March 23 on Limited Companies and Law 7/2003 on New Limited Companies (SLNE).
- An SL is a company constituted by one or more partners, who can be either individuals or legal entities. It requires a minimum capital of €3,002.06, which is divided into shares, and features limited liability.
- The Limited Liability Company (SRL/SL) is a common legal form for businesses in Spain.
- Its regulations are flexible and adapted to current business needs.
Key Characteristics of the SL
- Limited Liability: The liability of partners is limited to the capital contributed; they are only liable for the capital invested.
- Capital