Types of Companies: Sociedad Limitada Nueva Empresa (S.L.N.E)

Anglo-Spanish Chartered Accountants

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Types of Companies in Spain

Sociedad Limitada Nueva Empresa (S.L.N.E)

The company name must be the name of the owner of the business plus the code assigned by the Administration.

The minimum number of shareholders is one up to a maximum of 5 shareholders.  Shareholders must be individuals, not companies. The same person may not be a shareholder of more than one S.L.N.E.

The minimum share capital required to incorporate a “sociedad limitada nueva empresa” amounts to €3,012 up to a maximum of €120,202. The full amount of the share capital must be paid out in cash on incorporation.

This type of limited company has its own legal status as an entity separate from its shareholders.

The shareholders enjoy limited liability, thus their personal exposure is limited to the shareholder’s funds. It must be noted, however, that directors can be liable with their personal wealth should they trade unlawfully.

The profits of the “sociedad limitada nueva empresa” are taxable via corporation tax.

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

  • Limited liability.
  • Certain financial advantages in the year following the year of incorporation.

The main disadvantages of this legal form are as follows:

  • The minimum share capital must be in cash.
  • Shareholders must be individuals.
  • The company name will include the name of one of the shareholders.
  • The company business is limited to certain activities.
  • Incorporation can be lengthy as it usually takes between 20 and 30 days.
  • There are relatively high bureaucratic burdens in terms of compliance obligations, such as preparation of annual accounts.
 
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