BUSINESS PARTNERSHIP

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This company brings together a group of partners who share a collective name. All partners act on an equal footing, even if there are two types of partners: capitalists (who provide goods) and industrialists (who provide service, labour and/or activity). In this legal form, the personal assets of each partner do not form part of the business assets, as their liability is subsidiary (meaning that they will be liable with the assets of each partner when the business assets are extinguished). Partnerships are a form of company in which several partners assume unlimited and joint and several liability for the company's debts and obligations.

THE ADVANTAGES, DISADVANTAGES AND COSTS OF SETTING UP A GENERAL PARTNERSHIP IN SPAIN ARE DESCRIBED BELOW.

Advantages:

1. Unlimited liability: partners in a partnership assume unlimited liability for the partnership's debts and obligations, which can be an advantage in terms of credibility and stability.
2. Flexibility in decision-making: Partnerships have greater flexibility in decision-making, as they are not subject to restrictions imposed by shareholders or by law.
3. Lower registration costs: Partnerships require lower registration costs compared to other forms of company.

Disadvantages:

1. Joint and several liability: the partners in a partnership assume joint and several liability for the partnership's debts and obligations, which can be a drawback in terms of risk and security.
2. Difficulty in decision-making: Partnerships can have difficulties in decision-making, as they require consensus and commitment from all partners.
3. Conflicts of interest: Partnerships may give rise to conflicts of interest between partners, especially in terms of profit and profit sharing.

COST OF INCORPORATION

1. Fees of lawyers or tax advisors: it is advisable to engage a lawyer or tax advisor to assist in setting up the partnership and complying with legal and tax obligations.
2. Company registration: the registration of the partnership in the Commercial Register has a cost that varies depending on the requirements and formalities necessary.
3. Share capital: the minimum share capital for setting up a partnership depends on the company's object and needs, although this amount may be higher depending on legal and tax requirements.

In summary, the cost of setting up a partnership can range from EUR 500 to EUR 1,500, although this amount can vary depending on the factors mentioned above.