What is a limited liability company?

A limited liability company, also known by its abbreviation SL, is an organization in which its capital is divided through shares that can be social, accumulative or indivisible. One of the advantages of a limited liability company is that it offers extensive protection to its owners.

One of the differences between the limited liability company and the joint-stock company (SA) is that precisely the capital is divided into shares and not through actions. In addition, the partners of a limited liability company cannot be listed on the stock market while those of a limited liability company anonymous society sí.

Characteristics of a limited liability company

An SL primarily identifies small and medium-sized companies. And, the management body par excellence of an SL is the General Meeting of Partners. These are some of the most relevant characteristics of a limited liability company:

  • The minimum capital of incorporation is 3.012 Euros
  • The liability of the partners is limited to the capital contributed. Therefore, when making decisions, those with a larger number of shares will have more vote.
  • In tax matters they face the Corporation Tax
  • Its partners participate in the distribution of benefits and in decision-making, being possible the receipt of assets in liquidation cases.
  • Your partners can be chosen as administrators


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