If we are thinking of forming a new business, we will surely be informing ourselves about the types of company that are best for us. We can choose between several, depending on our capital, partners and a few more points. If you are thinking of creating a company, we will show you what a Public Limited Company is, one of the most common legal forms today.
Steps to follow:
1. The Sociedad Anónima, known by the acronym SA, is a capitalist type of legal form used in large companies. The most characteristic of this type of company is that the capital is divided into shares, each of these divisions belonging to a capital partner.
2. The number of partners to create a Public Limited Company can be one or more, and both individuals and legal entities may also be valid. In the event that it only has one partner, the company will be a sole proprietorship.
3. Another important characteristic of Public Limited Companies is that the responsibility of each partner will be limited to the capital provided and set aside for the company. This gives enough financial security to the partners who want to enter the company.
4. As for the minimum share capital, in the case of SA it is quite high. It will never be less than 60,101,21 euros. It will be divided into registered or bearer shares. In addition, the capital must be fully paid up, at least 25% at the time we establish the company. The amounts that are contributed later will be called passive dividends.
5. Finally, it is interesting to know that Public Limited Companies require two or three mandatory bodies. It is necessary to have a General Meeting of Shareholders, which among other things elect the administrators of the company. Obviously, it will also be necessary to have company administrators, who are presented as the managers and the representative body. There is a third body, which is not mandatory in all countries, called the Vigilance Council. This last body will be in charge of supervising the actions of the administrators.
6. Regarding the advantages of the Public Limited Companies, it is necessary to highlight the limitation of economic responsibility of the partners, as well as the freedom of agreement between them. Furthermore, there is no minimum or maximum percentage of capital per partner, and the shares can be freely transferred. Finally, this type of company can be listed on the Stock Market and the lack of activity is not the cause of its dissolution.
7. As for the main disadvantages or disadvantages, it is necessary to highlight the slowness and expenses of the incorporation process. Social capital is, as we have observed, quite high. In addition, we must add the complexity of the Corporation Tax and the need for an auditor or expert to be able to carry out capital increases.