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Incorporation

The incorporation type is usually determined on the basis of three main factors: the number of shareholders, capital and type of liability. The incorporation type is not final and can be changed. Nearly all Entrepreneurs normally initially register as self-employed workers and, upon consolidation of his or her initiative, set up a limited liability company (SRL).

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Description

Limited liability company (SL/SRL)

  • This is the legal status chosen by 7 out of ten 10 business owners.
  • It is the best option for SMEs with few partners.
  • Partners do not risk their personal assets.
  • A lot of initial capital is not necessary.
  • It can be set up online.   

Joint-stock company

  • This is the option of large and medium-sized companies with considerable investment requirements.
  • Liability is limited to the capital contributed.
  • It allows the company to be quoted on the stock market.

New Enterprise Limited Company (SLNE)

  • This is the best way to set up a company in 48 hours (business hours). It is formalised by means of a Single Electronic Document (DUE).
  • The liability of its partners is limited.
  • Minimum capital is €3,012 (maximum €120,202).
  • It provides a range of tax benefits.

Cooperatives and Worker-owned Companies

  • They require at least 3 partners.
  • Limited liability and tax allowances.
  • The shares cannot be freely transferred.

Self-employed individual  

  • This is the most common type of legal status for entrepreneurs when starting their business.
  • It is an individual who undertakes an economic or professional activity for lucrative ends, either with or without employees, on a regular, personal and direct basis, for him or herself and is neither overseen nor organised by another individual.
  • The legal status of the company is the same as that of its holder (business owner).

Do not forget...

  • The liability types.
  • To determine the necessary number of shareholders/partners.
  • To assess how urgently the initiative needs to be set up.
  • To determine the types of incentives involved.

What next?

  • Use the company type simulation tool to determine the possible types of legal status suited to the business.
  • Analyse the incentives of each type.
  • Analyse whether you require access to R&D&I help programs and instruments.
  • In the event the company type can be established online, start the procedure. Otherwise, visit the central register of companies in person to set the process in motion.   

Help in selecting the incorporation model


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