It is now possible to set up an SL in an agile, fast and economical way, but there are some drawbacks…
The new law aims to encourage the creation of companies by speeding up their incorporation. Among other measures – and only in the case of SLs – the minimum capital has been lowered to the symbolic amount of one euro, which previously had to be 3,000 euros. Even so, the ideal is for the company to have a capital that reaches that figure. See why.
It is established that limited companies may have a minimum share capital of not less than one euro, although a series of obligations are also established that must be complied with until this capital reaches the aforementioned figure:
At least 20% of the company’s profits must be transferred to the legal reserve each year until this reserve, together with the share capital, reaches 3,000 euros. Thereafter, the obligation to transfer 10% of the profit to the legal reserve is maintained until the legal reserve reaches 20% of the share capital.
And, in the event of liquidation, if the company’s assets are insufficient to meet the company’s obligations, the shareholders are jointly and severally liable for the difference between the amount of 3,000 euros and the amount of the subscribed capital. In short, the partners may be liable for as much as 2,999 euros, so it may be more convenient for them to contribute them up front.
On the other hand, even if the company can start its activity with only one euro of capital, the fact is that the project will always need money to develop (payments for materials, supplies, staff costs, etc.), so if it cannot count on the capital of the partners, it will have to get into debt. And if there is no equity to support the debt, it may be more difficult to obtain financing.
In addition, in order not to be affected by the special obligations mentioned above, it is advisable to increase the share capital to 3,000 euros as soon as possible. 3,000 as soon as possible. This will entail notary and registration fees, so you will bear more costs in the long run.
3,000 immediately and you have a solid project with clear turnover prospects in the short term that needs an immediate start-up. In any case, remember that you can always make non-monetary contributions to reach the minimum capital. Consequently, the option of incorporating the company with a capital of less than 3,000 euros should be residual.
Our advisors will inform you on the best way to start your business project and how to raise sufficient capital to avoid future cost overruns.