Editor’s note: This article was first published in September 2010; its capital and partner requirements are the old ones and were already changing in 2010. Law 18/2022 later cut the minimum capital for an SL to 1 euro, and the SLNE form may have changed.
Here is a brief summary of the different legal structures available for setting up or forming a company in Spain.
Once you’ve read the summary, I recommend reading our article on which legal structure suits your business.
Types of legal structure
- Autónomo (self-employed sole trader)
- Sociedad Civil (civil partnership)
- Comunidad de Bienes (joint ownership arrangement)
- Sociedad Limitada (private limited company)
- Sociedad Limitada Nueva Empresa (new-enterprise limited company)
- Sociedad Anónima (public limited company)
- Sociedad Limitada Laboral (employee-owned limited company)
- Sociedad Anónima Laboral (employee-owned public limited company)
- Cooperativa (cooperative)
1. Autónomo
Made up of a single person. No initial capital is required, and this scheme is fully compatible with the general Social Security scheme for employees, so you can be registered under both at the same time. Liability is unlimited: if there are debts, you answer for them with all your present and future assets, and so does your spouse if you are married.
2. Sociedad Civil
Requires at least two partners. No initial capital is needed and, as with the self-employed, liability is unlimited.
3. Comunidad de Bienes
Requires at least two partners, whose liability is unlimited. It involves fewer formalities to set up than a civil partnership, but it also comes across as less permanent. No initial capital is required.
4. Sociedad Limitada
Can be formed by as few as one person. The initial capital is €3,006, and liability is limited to the capital contributed.
5. Sociedad Limitada Nueva Empresa
At least one person and at most five partners. The initial capital is a minimum of €3,012 and a maximum of €120,202. Liability is limited to the capital contributed.
6. Sociedad Anónima
Can be formed by as few as one person. The initial capital is €60,101, and liability is limited to the capital contributed.
7. Sociedad Limitada Laboral
Requires at least 3 partners. The initial capital is €3,006, and liability is limited to the capital contributed.
8. Sociedad Anónima Laboral
Requires at least 3 partners. The initial capital is €60,101, and liability is limited to the capital contributed.
9. Cooperativa
Requires at least 3 partners. The initial capital is €1,803, and liability is limited to the capital contributed.
When choosing the legal structure for your business, it’s essential to consult your adviser about your specific project; here we can only offer the most basic guidance. If you’re thinking of starting your own business or company, begin by reading our article Which legal structure to choose for my company. In it, we recommend one structure or another based on capital contributions and the way each is taxed. Those are two important factors, but you’ll need to weigh many other conditions too.
Further reading
- The advantages of starting a business in times of crisis
- How to finance my business
- How to start a business with no money
- The entrepreneur’s mindset
Featured image: Zarateman, CC0 1.0, via Wikimedia Commons.
