Types of Companies: Comunidad de Bienes (C.B.)

Anglo-Spanish Chartered Accountants

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Types of Companies in Spain

Comunidad de Bienes (C.B.)

The naming for this type of entity is un-regulated, therefore any name may be used.

There is no legal minimum number of shareholders/members (comuneros).

There is no initial minimum or maximum share capital. A member may contribute only property. However, he or she may not contribute just money or work.

A “comunidad de bienes” does not have its own legal identity. However, it has the capacity to act in the legal system on behalf of its members.

The members have unlimited liability in relation to the business activities of the “comunidad de bienes”, thus they are liable with all their personal assets, jointly and individually.

The profits of the “comunidad de bienes” are taxable as personal income tax. Each member of the community must declare his/her share of the profits in their own income tax return.

In summary, the main advantages of this legal form are as follows:

  • The incorporation process is simpler that with other forms (a public title deed is only required when property is involved).
  • Membership of the “comunidad de bienes” is voluntary.
  • There is no minimum initial capital.

The main disadvantage of this legal form is that in the case of third party liability, if the community cannot meet all its obligations with all of its assets and, the members would respond for the difference with their personal wealth.

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