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Corporate relationships in Spain: which one should I choose?

Taking into account the different types of corporate relationships that exist in Spain, today we decided to explain what each of them consist of so that you can choose the one that best suits the needs of your business. Are you interested in this topic? Continue reading below!

What are the types of corporate relationships?

First of all, it should be noted that corporate relationships constitute a contract between two or more persons who are linked to carry out the operations of a business. Currently, in Spain we can list several types of companies such as the following:

Commercial companies

This type of corporate relationship is probably the best known, and groups together four major distinct groups: the limited partnership, the joint stock company, the general partnership and the limited partnership.

Limited partnership (SL)

If you are thinking of starting an SME, this may be an option that suits your business idea. Why? In general terms, limited partnerships are characterized by requiring a low investment compared to other legal forms, and it is feasible to carry it out individually or to form it with few partners.

Likewise, as its name indicates, the liability of the partners is limited to the capital contributed and is divided into participations. In this sense, a minimum of 3,000 euros is required for its incorporation and must be delivered in full at the time of signing the public deed.

With regard to taxes, these are taxed under corporate income tax, which allows for the possibility of deductions and tax credits.

Corporations (SA)

In this case, corporations are ideal if you are thinking of creating a large company, as they are regulated and fairly large structures that can be listed on the stock exchange.

For this reason, the minimum investment to register an SA is 60,000 euros, and this amount can be contributed in full at the time of its creation or through partial disbursements. In addition, the capital will be divided into shares that can be transferred.

In these corporate relationships it is common for annual accounts to be drawn up, as well as periodic inspections by the State.  And at the time of declaring taxes, they will be taxed under the corporate tax, corresponding to 25% of the profits obtained.


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Labor company (SRLL / SAL)

The labor companies correspond to a special type of limited liability company or stock corporation, with the distinction that two groups are included within its ownership: the labor class, which obtains approximately 51% of the shares; and the general class, which does not work directly in the company.

The minimum investment to form this type of company will be 60,000 euros (in the case of a corporation) or 3,000 euros (in the case of a limited liability company).

In addition, a special mandatory reserve fund of 10% of the profit obtained is required to be set up.

General partnership (SC)

This type of business partnership implies that as a partner you not only invest capital, but also participate in the management of the company.

Likewise, for its incorporation no minimum capital is required and it is necessary that it be composed of at least two partners and include in its name the name of one of the partners followed by the words “and company”. With respect to the maximum number of partners there is no established figure.

On the other hand, its liability is unlimited, which means that the partners are personally liable for any losses incurred by the company, and the corresponding debt may be demanded from each partner.

Limited partnership (S.Com)

These partnerships are usually attractive because they do not require a minimum capital to start operations, and can be composed of two types of partners:

  • General partners, who are unlimitedly liable for corporate debts and do participate in the management of the company

  • Limited partners; who do not participate in business management issues and their liability is limited to the capital contributed.

Do you identify yourself as a general partner or limited partner? Then this probably corresponds to a type of partnership that fits your needs and allows you to carry out your projects.


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Other types of corporate relationships

Public civil society

This type of company functions as a private collaboration agreement between two or more persons who make an investment in the company and jointly carry out a profit-making activity.

In this sense, the partners seek to share the remuneration obtained or the profits that may be generated by the company.  In addition, they are taxed for Personal Income Tax, since the partners will act in such a way.

Therefore, if you are looking for a partner to carry out a project or event for a specific period of time, this may be the corporate relationship you need. In addition, a plus that usually attracts attention in the business world is the fact that it does not require a minimum investment capital and the liability is unlimited and personal to third parties.

Cooperative society

When we talk about cooperative societies, we refer to groups of different people that seek to develop a non-profit business activity, but with social purposes.

In Spain, there are two types of cooperatives: grade one (usually three individuals or legal entities) and grade two (usually two or more legal entities).

Also, a favorable aspect is that the liability of the partners is limited to their contribution. However, it can be modified and become unlimited.

With regard to the number of partners, these are usually made up of 2 to 5 initially. As for the investment, it is worth mentioning that it must be defined in the bylaws and may vary depending on the number of existing members. However, none of the members may hold more than 25% of the capital in the case of first-degree cooperatives, nor 45% in the case of second-degree cooperatives.


You may also be interested in: How to turn your company into a franchise?


While it is true that there are various corporate relationships, with the right advice you can learn more details to create a company that really fits your needs. Therefore, in this link you can contact our experts in TAS Consulting and clear each of your doubts.


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