Legal Business Structures and Company Types

Types of Legal Company Forms

1. Individual Company

1.1 Self-Employed (Sole Trader)

• Work for oneself: Suitable for individuals.
• Liability: Unlimited liability for debts.
• Taxation: Your profit is taxed via Income Tax.
• Minimum Capital: No minimum capital required.
• Name: Must be the name of the owner.
• Activity: The activity should be profitable.

2. Social Enterprise (Company)

2.1 Capitalist Societies

Sociedad Anónima (SA)

• Members: At least 1 member.
• Minimum Capital: €60,101.21, divided equally into shares.
• Taxation: Corporation tax.
• Name: Name + "SA".
• Liability: Limited liability.

Limited Liability Company (SL or SRL)

• Partners: At least 1 partner.
• Minimum Capital: €3,005.06.
• Taxation: Corporation tax.
• Name: Any name or "SL" + "SRL".
• Capital Structure: Capital divided into equal parts called units.
• Liability: Limited liability.

New Company Limited Partnership (SLNE)

• Purpose: To form partnerships quickly if they are small.
• Partners: 1 to 5 partners.
• Capital: From €3,012 to €120,202.
• Name: Any name + "SLNE".

2.2 Staff-Based Partnerships

General Partnership

• Partners: 2 or more partners.
• Taxation: Corporation tax.
• Minimum Capital: No minimum capital.
• Name: Name of any of the partners + "Cía".
• Liability: Unlimited, personal, solidary (compassionate), and subsidiary liability.

Limited Partnership

• Partners: 2 or more partners.
• Types of Partners:
  • General partners: Unlimited responsibility.
  • Backers: Limited responsibility.
• Minimum Capital: No minimum capital.
• Taxation: Corporation tax.
• Name: Name of a partner + "SC" or "Limited Partnership".

Limited Partnership by Shares (SCA)

• Partners: 2 or more partners.
• Structure: There are two types of partners, but capital is held in shares (actions).
• Minimum Capital: €60,101.
• Taxation: Corporation tax.
• Name: Any name + "SCA".

2.3 Social Interest Entities

Cooperative Societies

Note: Some question its commercial character. People are associated with common needs and interests to develop a business.

• In Extremadura: 3 partners for the 1st degree, 2 members for the 2nd degree.
• Minimum Capital: €3,000.
• Taxation: Corporation tax.
• Name: Any name + "Cooperative Society".

Labor Company (Sociedad Laboral)

• Partners: Minimum 3 partners.
• Types: SAL (min. €60,101) or SLL (min. €3,005).
• Capital Requirement: Most of the capital (51%) has to be held by social workers.
• Taxation: Corporation tax.
• Liability: Limited liability.
• Name: Any name + "SAL" or "SLL".

1.4 Other Social Forms

Civil Society

• Taxation: Income tax.
• Liability: Limited liability.
• Minimum Capital: No minimum capital.
• Partners: Minimum 2 or more partners.
• Name: Any name.

Community of Property (CB)

• Taxation: Income tax.
• Liability: Limited liability.
• Minimum Capital: No minimum capital. It is the community in an asset.
• Members: Minimum 2 or more co-owners (villagers).
• Name: Any name + "CB".