Limited Liability Company
lawyers in spain

S.L. – Sociedad Limitada

The most important advantage of a S.L is the limited liability of the company´s shareholders. Therefore, only the assets of the company are liable. It is impossible to execute debt against the shareholder´s personal capital.

 

Spanish S.L. Key Points

–       Only 2 weeks to be incorporated

–       Directors can be of any nationality

–       Just requires 1 director

–       Only 1 shareholder required

–       VAT registration in 2 days

–       Only €3,000 share capital requirement

–       Directors and shareholders will need a spanish fiscal identity number

 

Incorporating a limited liability company is a sign that your business is serious with a long term goal and properly organized. This company will have a legal existence separated from management and its shareholders.

A company has more tax advantages that sole traders or autónomos.

The company structure allows the business to be conducted internationally

 

Advantages for the Shareholders

The S.L. shareholders liability is restricted to the initial share capital.

It keeps anonymity, as the transition of shares are often recorded only in the Notary Public´s records, thus maintaining confidentiality about its ownership.

The dividends which shareholders receive are not subject to social security.

Wealth Transfer

It is easier to transfer company shares than transferring assets. Therefore, if you need to transfer wealth within a family, this is the most convenient option.

The transfer of shares, can be done with a notary by signing documents.

 Some taxes which are applied on the transfer of goods, do not apply on the transfer of shares.

Tax grounds

When you transfer a property, a transfer tax or capital gains needs to be paid. These taxes can be delayed or even vanish with the transfer of shares in a company that owns real property. However, there might be a tax charge on the transfer of company assets, the legislation will vary between Regional Governments (Comunidad Autonoma) and will depend on the relationship between the transferee and transferor as well as their place of residence.

Tax Benefits

The losses resulting of trading can be compensated against future profits.

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