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| Setting Up A Company: The Service |
The choice of the legal form to adopt for starting up a company should be made after careful study, in order to choose the one which best suits the characteristics of the project to be carried out. |
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In Spain, the most suitable legal form for small and medium-sized businesses is the Limited Liability Company (Sociedad de Responsabilidad Limitada - S.L). |
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This legal figure is very common amongst small and medium-sized businesses, although it also occurs amongst large-scale family businesses, due to its affordable conditions with regard to capital and very flexible management. |
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Limited Company |
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This is due to the fact that this type of company restricts the ability of outsiders to gain access to the company as shareholders; it also has a more affordable capital figure and more lenient conditions. |
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| Major advantages: |
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- Affordable minimum company capital figure: €3,005.06 (which must be deposited in full in order to set up the company). The company capital will be divided into company shares.
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The shareholders' liability is limited (to the amount of capital contributed).
- General principle of a flexible company. It accepts as valid any agreements which are not expressly forbidden by law.
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Acquiring and losing the status of shareholder takes place by virtue of the acquisition and transfer of the company shares, which are not securities.
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There is a restriction on the free entry of shareholders.
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The transferability of the shares is restricted by law and may even be forbidden altogether by one of the articles of association (in this case, with the shareholder having a right of separation). |
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The shareholders possess the right to participate in issues of preference shares and to transfer this right, and to collect dividends and a share of any liquidated assets, in addition to the right to vote, and access to all the information on the business. |
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Allows the separation and exclusion of shareholders on the grounds specified in the articles of association.
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Allows plural voting in the shareholders' meeting.
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Simple management organs. Greater ease of convening a Meeting of Shareholders. The notice of the meeting may be given through any system of communication which ensures that all the shareholders receive the notice and with a minimum period of notice of a fortnight. All the shareholders are entitled to attend the meeting irrespective of the number of shares they hold.
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