The 5 main types of commercial companies

Any profession based on groups of people working on the basis of agreements, according to commercial law, It is developed through mercantile companies, or commercial companies. That is, companies or organizations. This is the legal form taken by any type of entity incorporated with a specific capital, where Several partners and a bank that offers us financial credit participate, as long as the case is required.

The types of commercial companies are determined according to the activity to which the company wants to dedicate itself. It is not the same to want to sell a product (tangent) than a service (intangible), a car that some shirts, or a plane ticket and a plane. Different factors will need to be well analyzed and studied for the type of society that you want to project in the business world.

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Who can start a company?

It is essential to attend to this question. For legal purposes, any natural or legal person, that is, a citizen with rights and obligations, has the legal capacity to establish a company. The conditions and nature of the activity to be carried out will ultimately affect the character of the company.

Let's go by parts. And it is necessary to differentiate between society and individual person. The law does not provide any prior or special authorization for an individual to start business. It simply requires legal capacity, that is, have no legal impediment through a judgment by any court.

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What is a commercial company?

Unlike an entity or individual entrepreneur, a partnership part of the existence or agreement between more than two people, with an agreed capital depending on the objectives or economic activity that you want to give to the company. There must be a contractual consensus, technically defining the obligations and rights of each of the partners.

A company can focus on an activity with disparate benefits and objectives, be a commercial company or a cooperative society. In the case of the latter, its function is of an advisory nature and of support to other companies, especially to improve their performance.

The different types of commercial companies

As we have seen in the introduction, companies can adopt different types of commercial companies. We will review the 5 most common in a generic way.

1. Anonymous society

The Public Limited Company is the most common type of company within the Spanish tax system. It can be formed by a single owner, with a contribution of no less than 60,000 euros (a lower amount disables the status of anonymous), divided into shares contributed by different partners. In addition, the S.A. it supposes a disbursement of 25% of the total capital so that its creation becomes effective.

The constitution of a joint-stock company is conditional on the granting of a public deed before a notary and its corresponding Mercantile Registry. The capital contributed is divided into shares contributed by the partners, which can be made in cash, rights or assets.

2. Limited Liability Company

The limited liability company has an initial capital divided into indivisible, accumulative shares and, what is more important, equally between the partners. No one can have more or less participation than others. The amount for its constitution cannot be less than 3,000 euros and this amount must be paid ipso facto.

The partners have the right to participate in the distribution of the benefits, as well as the equity resulting therefrom (surplus). The partners have the right to make executive decisions, as well as form part of the Administrative Board, which is in charge of deliberating actions and agreements.

3. Labor Society

It is one of the least common business companies today. It has an enviable democratic character and transparency. In the labor society, capital can be contributed by the workers directly, a fact that creates a more direct link between the responsibility of employees and the resources available with their management, avoiding misappropriation. Similarly, there may be a partner who is not a worker.

In this company there cannot be a name of constituent partners of less than three, with a capital of not less than 60,000 euros in the case of a S.A.L, or 30,000 euros in the case of a S.L.L., where a percentage of at least 25% of the total capital must also be paid at the time of its Constitution.

4. Collective society

The partners are direct managers, respond personally to social debts and do so in an unlimited and joint manner. In addition, these partners can contribute their influence in the form of capital and workforce at the same time. The curiosity in this case is that the name of the company must contain the names of all the members or, on the contrary, the concept "and company" or "company" must be added respectively.

The collective society must have no less than two individuals, the capital contributed by each of them It can be in fiduciary money, rights or directly credits. The partners have the right to direct management of the company, monitoring and control of administration and accounting.

5. Cooperative Society

Within the corporate world, this would be the model that every employee would like. This society clearly differs from the previous ones by having a more horizontal and participatory nature of the partners. In fact, the cooperative society is an association of natural or legal persons that seek to develop an economic activity of common interest.

The advantages of this company are that the capital is variable and neither a minimum nor a maximum is needed for its constitution, the management of it is democratic, all partners have the same rights and these can be registered or canceled voluntarily and when wish.

Bibliographic references:

• Fanjul, J. L.; Castaño, F. J. (2001). Business project. Editex. Madrid.
• Rodrigo Illera, C. (2008). Administration and Company Functions. Ed. Sanz y Torres, Madrid.