Businessmen have the option of opening a co-partnership in Spain that is a special form of business entity wherein two or more people decide to join together and contribute capital, equipment and labor. Any profit that results from the activities of the partnership shall be divided equally or in accordance of the partnership agreement. It serves as the contract of the partners and must be notarized and registered for economic activity tax. You can ask our lawyers in Spain for assistance on how to open a co-partnership.
Types of co-partnerships in Spain
After deciding to form a Spanish co-partnership, the partners have to decide on the type they want to establish. The different kinds of co-partnerships depend on the amount of liability the partners bear. Our attorneys in Spain have identified the co-partnerships as follows:
1. General partnerships – This type of co-partnership is identified with unlimited personal liability for its partners. This means that partners are liable for partnership obligations even beyond the amount of their respective contributions. This feature makes this type least desirable by businessmen.
2. Limited partnership – The most attractive feature for this type of partnership is that some partners have limited liabilities with regard to partnership debts. Those labeled as limited partners are only liable for partnership debts only to the extent of their specific contribution. Their personal assets are not made liable.
3. Limited share partnership – This form of partnership is a combination of a limited partnership and a corporation. A limited share partnership’s capital is distributed as shares representing the specific contributions of the limited and general partners. The board of directors must also be a partner and they carry a personal liability for the partnership debts.
Legal personality of co-partnerships in Spain
Spanish co-partnerships can either be official or unofficial. It only needs to become an official partnership if certain contributions are made, like real estate. But whether the co-partnership is official or not, the entity itself does not have its own separate legal personality. That is why in the case of any liability incurred by the co-partnership, the partners comprising the co-partnership are also liable. This is different from a corporation wherein the liabilities of the corporation are separate from that of the persons comprising it. Our Spanish lawyers can inform you further about your liabilities as a partner.