Also known as "SRL" and popularly known as "SL" or Limited Company. It is one of the types of companies within the commercial sphere, it is widely used in Spain by self-employed entrepreneurs and self-styled “entrepreneurs”.
This in turn allows the members of this type of company, limit your liability to the capital contributed to the company. Thus, this is an effective way to protect your personal assets, as part of the possible risk of indebtedness by the business and society in question.
What is a sole proprietorship limited liability company?
When it comes to company options, it's the sole proprietorship limited liability company. One of the most selected by entrepreneurs that in their first steps in the market they prefer to register self-employed and thus be able to work for themselves.
This type of company It is chosen by those entrepreneurs who aspire to be an individual entrepreneur and in the same way enter commerce and industry with a limited liability with which they ensure their assets.
Can be given two different cases of sole proprietorship limited liability companies
- One of them is made up of a unique partner, I already know that this only partner is a legal or natural person.
- The second distinctive case of the sole proprietorship limited liability company consists of a society constituted by two or more partners. This provided that all shares have been transferred and become the property of a single partner.
Characteristics of a sole proprietorship limited liability company
Even when they exist multiple types of commercial companies through which an individual can begin to build their business.
It is the sole proprietorship limited liability company, which offers special benefits and advantages for the self-employed and unique type of entrepreneur.
This trading company is mainly characterized by having a single partner, being that partner who has the executive power within the company to administer it or delegate the administration either to a group of people or to another individual.
Another important feature of this type of society of sole proprietorship limited liability, is that just like the other societies. The capital contributed is limited just like their liabilities with the debts of the society, but in the society of rlimited sole responsibility the capital stock is divided into equal and indivisible parts.
Some of the more specific characteristics of a sole proprietorship limited liability company
- The constitution and deed of the company must specifically determine the organization of the administration. Being only changed if the statutes provide for such changes.
- To set up a one-person limited liability company, you need a minimum of 1 natural person. Being more people included, the company to be only limited liability or LLC.
- Must be register and record in writing to the Commercial Registry any change of sole partner, as well as the change of sole proprietorship of the limited liability company.
- Must be registered in the Mercantile Registry, that one-person limited liability company that is also constituted by public deed and that will contain the statutes of the company.
- It should submit the deed of incorporation of the mercantile company within a period of two months, same period that begins to count from the date on which the company's articles of incorporation were granted. Being the founders and administrators those who will jointly and severally respond to the fault, damages and prejudices that they cause due to the breach of the obligation of registration in the Mercantile Registry.
Some features added to the SL
- In the event of a need to register as a single-member limited liability company within 6 months before the Mercantile Registry, the partner will respond unlimitedly and jointly to the social debts that it has contracted, during this period that the company passed without being registered with the Mercantile Registry.
- La society can start commercial activities on the date of granting of the articles of incorporation, not before.
- Unless otherwise provided in the Statutes, the sole proprietorship limited liability company will have an indefinite duration.
- Being 3.000 Euros the minimum initial capital to constitute a sole proprietorship limited liability company. The capital will be divided into equal and indivisible parts, which cannot be taken as shares or any negotiable title. The social capital contributed must be fully paid up for participation in the company to be credited.
- Within the contribution of social capital can be provide valuable rights or assets and these will be taken as the economic proportional part.
- Under no circumstances and in no case may they be counted as contributions to share capital, those jobs or services.
- Unless otherwise stated or stipulated, all contribution to the capital stock will be considered to be made by title of property.
These characteristics clarify the option of an entrepreneur who wants to run his own business, being a business figure. Employing a certain amount of human factor and whose needs are not satisfied by establishing itself as a limited liability company.
What is a sole proprietorship limited company?
With respect to constitution of a sole proprietorship, the advantages, perhaps elementary, should be considered, such as how simple it can be register with the Mercantile Registry, as a self-employed entrepreneur as opposed to wanting to establish a limited liability company.
Another part of the vAdvantages of incorporating as a sole proprietorship limited liability company, is the ease with which financial institutions can offer us financing for the start of operations of this company.
For set up a sole proprietorship limited liability company a certificate of "Social denomination" this issued by the Central Mercantile Registry.
Saying certificate is valid or has a shelf life of 3 months, Being the term in which this is valid and it being understood that after these same 3 months the certificate can be renewed to be valid for another three months, however, it is not recommended to let the certification expire or expire.
From this certificate issued by the Central Mercantile Registry, a copy must be attached when filling out the DUE.
Then the contribution of social capital must be made, whether they are monetary or non-monetary contributions.
Monetary contributions are those whose amount is solely monetary and is the monetary contribution of each partner, in the case of being a non-monetary contribution, this may be that of an asset with a defined and specific value.
In the case of one sole proprietorship limited liability company, You must pay the Tax on Patrimonial Transitions in the Treasury and also request the CIF, in addition to other certificates.
Differences that a one-person limited liability company "SRLU" has with a limited liability company "SRL"
Let's start with the differences that exist between the society of sole proprietorship limited liability "SLU" and a self-employed worker.
Both are constituted differently and pay taxes differently. Meanwhile he self-employed worker is taxed through personal income tax or "Personal Income Tax", which by the way has a nominal rate of 19,5% - 47%.
The Sole-Shareholder Limited Liability Company "SLU", taxed through corporation taxSince these taxes are lower already from micro-companies that pay less than 15% or as a maximum for companies of 25%, this only in 2016.
Within the accounting differences, the same beneficial difference for the company is not palpable, being the self-employed worker registered who fulfills fewer obligations than a company, this for obvious reasons.
While the self-employed worker must present an account book that represents and reflects the inflows and outflows of money, which could be classified as an easy task being carried out by a single person, on the other hand, the one-person limited liability company must carry the accounting aspects as do all types of commercial companies, having to present a account balance that adheres to the general accounting plan.
More tips on the SL or the self-employed
The downside here for the self-employed is how capable he is of carrying out this time and knowledge control to perform his accounting aspects.
Some responsibilities of the self-employed and commercial companies Well differentiated and that represent of great interest when forming a company, are the responsibilities for non-payment or unpaid debts by the company.
Being a self-employed worker, the debts fall on the direct patrimonial assets of the person in question for non-payment, while, being a limited liability company, It is in the event of non-compliance with payments, only the assets with which the commercial company was constituted would be endangered, such assets or contributions that are given at the time of incorporating it as a commercial company before the Central Mercantile Regime.
In short the the self-employed person is more at risk of losing his assets and everything that a commercial company owns that runs the risk of losing an investment given to the capital stock.
Within the vadvantages and disadvantages that may exist between being a self-employed worker or being a limited liability company, with the benefits that being an SME offers.
It is recommended to start as a self-employed worker, in order to achieve stabilization in the market and move on or aspire to be a incorporated commercial company.