Major differences between the corporation and limited liability company (I)

1. With regard to capital:

a) The corporation capital is divided into shares, being the minimum capital of sixty thousand (60,000) euros, which should totam been subscribed and paid in at least twenty-five percent. You can decide the issue of bonds and other securities and the shares may be listed on secondary markets.

b) the limited company, the capital is divided into shares, being the minimum of three thousand (3,000) euros. which must be fully subscribed and paid.

2. With regard to the contributions that constitute the capital of the entities, both in its own constitution as any capital increases the difference between the two types is in the form of non-monetary contributions, because while corporations is mandatory issuance of a report by asset valuation by independent expert except Aguña except in limited company headquarters report is not mandatory but may be recommended as members of society and jointly and severally liable creditors of the reality of the contribution and the value attributed to it, responsablitat prescribed five years from the time that he had made the contribution. However, members who do put on record their opposition to those who have undergone expert valuation excludes the contribution of such joint and several liability.

3. As regards the constitution of both companies, the corporation allows both simultaneous and successive foundation while limited company only allows one.

4. You mentioned the different minimum capital requirement in both social, being worth mentioning here that if the corporation unpaid portion of capital must be provided within established by the bylaws, in the event that they are non-cash contributions, the deadline may not exceed five years from the formation of the company or the agreement to increase capital.

5. It also noted the different way of dividing the capital, speaking of actions in case of corporation, and shares if it is limited company. In both cases but are aliquot, indivisible and accumulated social capital and give the legitimate owner shareholder status and the rights conferred by the Law and the Articles of Association of the company.

However, while the action may be represented by certificates or book entries, taking into consideration all cases of securities, the share capital of the limited partnership can not be represented by either the media or referenced by the action will never considered value.

There may be preference shares, but privileges can not affect voting rights, only economic, not being possible vote yes and pluri however a limited number of maxi votes cast by a shareholder or companies belonging to the same group. In her area of ​​social participation, can be referred to the privileges and political rights may vote PLUR.

5. The transmission of action differs significantly from that of social participation, as in the first case is essentially free although they may enter via statutory provisions to restrict somewhat the transmission, while transmission is basically restricted shares although it can alleviate Articles.

The transfer of shares must always give in deed while the transfer of shares must be made mandatory before notary public only in the case of bearer shares not listed on a secondary market always and when the transfer takes place with no involvement or mediation of a company or broker or a credit institution.