Limited Company (SL) or Limited Liability Company (SRL)


Speed up your business with these tips "Sociedad Limitada (SL) or Sociedad de Responsabilidad Limitada (SRL)". Analyse and discover this TIP!

The Limited Companyalso known as Limited Liability Companyis a commercial company that has its own legal personality and can have only one partner (see TIP sociedad limitada unipersonal) or more than one. It is one of the most common legal forms.

The initial share capital 3,000 euros, but since the adoption of the new Crea y Crece" law in SpainThis amount has been reduced to one euro. The capital is made up of the contributions of the company's shareholder(s) and is divided into shares, which are indivisible and cumulative.

In the case of the SL, the shareholders are not unlimitedly liable for the company's debts (hence the term "limited liability"). They are therefore only liable for the capital they have contributed.

To set up a limited company (S.L.)

The main types of formalities are:

  • Constitutional (deed of incorporation and articles of association of the company, registration in the Commercial Register, formalities with the tax authorities, compulsory books, etc.).
  • Administrative (they require the intervention of one of the Administrations -local, regional or national-, whether to collect taxes, apply for registration or grant a licence.
  • Labour (registration with the Social Security self-employed scheme, registration of the company in the Social Security, affiliation and registration of workers, formalisation of employment contracts, etc.).
  • Other formalities and requirements, sector-specific or generic (e.g. occupational risk prevention, personal data protection law, general insurance, patent and trademark registration, etc.).

Advantages of setting up a limited company in Spain:

  1. Limitation of liability: The liability of the partners is limited to the capital they have contributed, which means that the partners are not personally liable for the company's debts.
  2. Greater flexibility: Limited partnerships offer greater flexibility in the management and organisation of the company, allowing partners to make quicker and more efficient decisions.
  3. Increased credibility: The formation of a limited company can improve the company's image and credibility with suppliers, customers and other stakeholders.
  4. Increased financing capacity: Limited companies have a higher funding capacity, which allows them to more easily obtain long-term financing and improve their financial situation.
  5. Greater legal certainty: The formation of a limited company provides greater legal certainty, allowing the partners to carry out their business activities with greater peace of mind and confidence.
  6. Greater stability: Limited companies tend to have greater stability, as they have a stronger and more stable organisational structure.
  7. Increased employment generation capacity: Limited companies have a greater capacity to generate employment, as they can hire more workers and expand their business activity.

In summary, limited companies offer a number of advantages that can be very useful for entrepreneurs and investors. Therefore, if you are considering setting up a business, it is important that you consider setting up a limited company.

Remember that mentorDay is Official EAP (see+) with which we can register your SL




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