Types of Companies in Spain: Which One Should You Choose?

SL, SA, partnership or limited partnership. Behind these acronyms lies much more than just a legal name. Choosing the right legal form is not a simple formality: it means deciding how to protect your assets, how much you will pay in taxes, and even how fast your project can grow.

In this article, we shed light on the types of commercial companies in Spain in 2025. We explain their key features, advantages, and when it is advisable to choose one over another.

Why is choosing the right legal form so important?

Because it sets the rules of the game. Starting as an SL is not the same as launching as an SA or opting for a less common structure. The legal form determines:

• The degree of liability of the partners.

• Tax and accounting obligations.

• The governance structure.

• The ability to attract investment or grow.

A mistake here can be costly: unexpected expenses, barriers to growth, or potential investors unwilling to join due to an inadequate legal form. At Adlanter, we see this every day. That is why we support freelancers, startups, and SMEs at this critical stage.

Main types of companies in Spain

Spanish law offers several options. Each has its own logic, target group, and context. Let’s take a quick look before analyzing them in detail.

Quick comparison of company types in Spain (2025)

Type of Company	Minimum Capital	Type of Liability	Best Suited For…
Limited Liability Company (S.L.)	€1	Limited to the capital contributed. Partners are not personally liable.	SMEs, entrepreneurs with few partners, projects with moderate initial investment.
Public Limited Company (S.A.)	€60.000	Limited to the capital contributed. The company is liable with its own assets.	Large companies, projects seeking external investment or issuing shares.
General Partnership (S.C.)	No minimum capital required	Unlimited, personal, joint liability. Partners are personally liable with their own assets.	Very personal businesses, total trust among partners. Rarely used.
Limited Partnership (S. Com.)	No minimum capital required	Mixed: general partners with unlimited liability and limited partners with liability limited to their contribution.	Structures where some contribute capital and others manage. Very rare.

Limited Liability Company (S.L.)

The Sociedad de Responsabilidad Limitada (SL) is the most common form of company in Spain. It is a capital company in which the partners are not personally liable for corporate debts, limiting their risk to the capital they have contributed. Key features:

• Can be incorporated by a single partner (Single-Member LLC).

• Minimum capital: €1.

• Capital is divided into “participaciones sociales” (shares not freely transferable), not stock.

• Public deed and registration with the Commercial Registry are mandatory.

It is ideal for entrepreneurs and SMEs seeking a solid start without risking personal assets. However, it entails tax obligations (Corporate Income Tax, VAT, withholdings).

Special regime for capital below €3,000

If the capital is under €3,000, specific rules apply to protect creditors:

• At least 20% of profits must go to the legal reserve.

• Upon liquidation, if assets are insufficient, partners are jointly liable for the difference between the subscribed capital and €3,000.

 

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Public Limited Company (S.A.)

The Sociedad Anónima (SA) is a capital company where ownership is divided into shares, making it easier for investors to enter and exit. Liability is limited to the contributed capital. Key features:

• Minimum capital: €60,000 (25% paid up at incorporation).
• Shares are securities and, as a general rule, freely transferable.
• May issue securities and list on stock markets.
• The only company type allowed to go public.
• More rigid and formal governance than an SL.

 

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General Partnership (S.C.)

The Sociedad Colectiva is a partnership in which all partners manage and are jointly and severally liable with their personal assets. Key features:

• At least two partners, both directly involved in management.
• No minimum share capital required.
• Partners have unlimited personal liability for debts.
• The company’s name must include that of one or more partners.

Its use today is minimal, though it can still suit family businesses or professional projects built on absolute trust among founders.

Request a quote to incorporate a General Partnership

 

Limited Partnership (S. Com.)

The Sociedad Comanditaria combines two types of partners with different levels of liability and involvement. Two main types exist: simple and by shares. Key features:

• General partners: manage the company and have unlimited liability.

• Limited partners: contribute capital, liability limited to their contribution, with no management role.

• No minimum capital for the simple form. The limited partnership by shares follows SA rules (including the €60,000 capital).

• Management and representation are reserved exclusively for general partners.

Its usefulness lies in allowing some to invest without taking part in management or assuming full liability, while general partners retain control.

 

Request a quote to set up a Limited Partnership

✅ Which type of company suits you best?

• Looking for asset protection and flexibility? An SL is ideal for SMEs and startups wanting a solid start without risking personal wealth.
• Aiming for accelerated growth and external financing? An SA is the path for companies targeting large-scale expansion and investors.
• Family business or built on absolute trust? An SC fits businesses where partners directly share risks and responsibilities.
• Want to invest without managing? An S. Com. lets limited partners invest capital without governance duties, while general partners retain control.

At Adlanter, we simplify the process: from initial analysis, drafting bylaws, completing all legal procedures (notary, Commercial Registry, Tax Agency), to providing immediate tax and accounting support.

Incorporating a company is not just a legal formality. It means laying the foundations of your project and making decisions that will shape its growth, taxation, and asset protection.

Contact our professionals to learn more about our corporate management services.