Pros and cons of starting a business by setting up a civil society
Posted: Wed Dec 18, 2024 5:29 am
A civil partnership is a contract between two or more partners, through which the parties voluntarily agree to pool money, work or industrial resources, with the aim of sharing the profits obtained from the activity among themselves. This formula is chosen by some people due to the advantages it offers, compared to other more expensive options or those with more complex operations.
However, it is important to know why a civil society is not always the best business structure to support a business . In this post, we will see what a civil society consists of and discuss the most important aspects that affect its operation.
Basic requirements for setting up a civil society
A civil company is a very basic business structure, which requires at least two partners to participate. The capital they must contribute is minimal, and the company can be nursing homes email list set up with €1. The procedures, although they may vary depending on the Autonomous Community where they are carried out, are usually quite simple and the company can be set up in a matter of hours, from one day to the next. A private contract is required ( example of a model ) that includes the nature of the contributions and the distribution of the partners' participation in the company's profits and losses.
At least one of the partners must be registered with the corresponding Social Security system . It is necessary to obtain the NIF corresponding to the company and, in the case of contribution of real estate or property rights, it is necessary to go to the notary to sign the public deed.
The fact that the requirements for setting up a civil partnership are simpler than for other types of partnership is what leads some people to opt for this option. But be careful, because not everything is an advantage . In the next section, we will look at the main pros and cons of a civil partnership.
Pros and cons of civil society
The main advantage of a civil partnership is its simplicity from an administrative point of view , from the moment of carrying out the incorporation procedures. Once in operation, it is also not obliged to present accounting books or to control the bank accounts. The taxation of the profits, if any, will be made individually by each partner, at the corresponding rate of personal income tax for each of them, which will benefit those who have a rate lower than 35%, which would be taxed in the corporate tax.
However, it is important to know why a civil society is not always the best business structure to support a business . In this post, we will see what a civil society consists of and discuss the most important aspects that affect its operation.
Basic requirements for setting up a civil society
A civil company is a very basic business structure, which requires at least two partners to participate. The capital they must contribute is minimal, and the company can be nursing homes email list set up with €1. The procedures, although they may vary depending on the Autonomous Community where they are carried out, are usually quite simple and the company can be set up in a matter of hours, from one day to the next. A private contract is required ( example of a model ) that includes the nature of the contributions and the distribution of the partners' participation in the company's profits and losses.
At least one of the partners must be registered with the corresponding Social Security system . It is necessary to obtain the NIF corresponding to the company and, in the case of contribution of real estate or property rights, it is necessary to go to the notary to sign the public deed.
The fact that the requirements for setting up a civil partnership are simpler than for other types of partnership is what leads some people to opt for this option. But be careful, because not everything is an advantage . In the next section, we will look at the main pros and cons of a civil partnership.
Pros and cons of civil society
The main advantage of a civil partnership is its simplicity from an administrative point of view , from the moment of carrying out the incorporation procedures. Once in operation, it is also not obliged to present accounting books or to control the bank accounts. The taxation of the profits, if any, will be made individually by each partner, at the corresponding rate of personal income tax for each of them, which will benefit those who have a rate lower than 35%, which would be taxed in the corporate tax.