Sociedad limitada (SL, Spanish private limited company)

A sociedad limitada (SL) is the standard company form for small and medium businesses in Spain: a legal entity of its own whose capital is divided into shares called participaciones. The owners' liability is limited to what they contributed, so as a general rule their personal assets stay out of reach of the company's debts.

Since Law 18/2022 (the Crea y Crece law) an SL can be incorporated with as little as 1 euro of capital. There is a catch: until the legal reserve plus the capital reach 3,000 euros, at least 20% of each year's profit must go into that reserve, and if the company is wound up without enough assets, the owners answer jointly for the difference between 3,000 euros and the subscribed capital. If you are weighing registering as an autónomo against forming an SL, compare both in the guide autónomo or SL.

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CIF (former Spanish company tax ID)

Capital social (share capital)

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