Law of Spanish Limited Companies

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Typographic rustic ISBN: 9788499532981

SKU: 9788499532974 Category: Tags: ,

A Limited Company, also called limited liability company, is a very common type of business association in Spain.
The Law of Spanish Limited Companies regulates the rights and duties of this type of companies in Spanish territory. If you have decided to incorporate a Limited Company (S.L.) in that country it is important to know the process of its creation and the laws that govern it.
Among other topics, this book defines how these types of commercial companies operate. So-called “limited” because they allow the liability of entrepreneurs to be limited to the capital contributed. For this reason, every time a debt is contracted, it is not returned with the personal assets of the partners, but with the one that was contributed in the limited company.
In the creation of a Limited Company, several

  • Statutory documents containing a detail of the shares of each partner.
  • In addition, information is needed on how the company will be managed.
  • and the set of rules for operations and especially for decision-making.

The minimum number of shareholders of an S.L. is one, and there is not even a maximum number of partners.
To begin with, the most positive aspect of the limited company form is its convenience for small and medium-sized businesses. This is because of the minimum number of shareholders (1) and the minimum capital requirement (3,000 euros).
As it is said in the Law of Spanish Limited Companies, liability in an S.L. is limited to capital. This means that the personal assets of the partners are protected.

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