What is the difference between a Limited Liability Company and a Public Limited Company?

The main differences between a Limited Liability Company (SL) and a Public Limited Company (SA) are:

CharacteristicLimited Liability Company (SL)Public Limited Company (SA)
Minimum capital1 euro60,000 euros
Transfer of ownership interestsRestricted (right of first refusal)Free (tradable shares)
Stock exchange listingNoPossible
Number of membersMinimum 1Minimum 1
Cost of incorporationLowerHigher
Administrative managementSimplerMore complex

For the vast majority of SMEs and startups, the SL is the most recommended legal form due to its simplicity, low cost, and suitability for companies with few members.

More questions about Sociedades

The members of a limited liability company have the responsibility to comply with the terms established in the articles of association, contribute their agreed capital, participate in business decisions, and respect the applicable laws and regulations. However, their responsibility is limited to the capital they have contributed and they are not personally responsible for the debts and obligations of the company.
The minimum capital required to constitute a limited liability company is 1 euro, after the last modification of the law of capital companies.
It is not mandatory to hire a lawyer or legal advisor to incorporate a limited liability company, but it is highly recommended. A lawyer or a legal advisor specialized in commercial law can provide you with advice on the legal requirements, draft the necessary documents, and ensure that the incorporation process is carried out correctly and complies with all applicable regulations. At notaría-online.com, we have a team of lawyers and legal advisors who will assist you in the management and processing of the incorporation of your limited liability company.
"Limited Liability Companies (SL) are ideal for small and medium-sized enterprises with few partners, family businesses, or professional partnerships. These business structures do not require investing large amounts of money in initial capital. On the other hand, Public Limited Companies (SA) are better suited to activities that require a greater number of partners to raise a more significant capital. Furthermore, SA companies offer greater flexibility in terms of partner mobility.
The requirements to form a limited liability company are the contribution of share capital, the designation of a registered office, the company name, the election and appointment of a management body, as well as the contribution and subscription of the share capital; all of this will be reflected in the deed of incorporation of the company, in addition to providing the articles of association by which the company will be governed.
A limited liability company is a form of business entity that combines characteristics of a partnership and a sole proprietorship. It is characterized by having limited liability, which means that the partners are not personally responsible for the debts and obligations of the company beyond their capital contribution.
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