A Srl (Limited liability company) is a type of capital company that is called “limited” because the shareholders (ie the owners of the company) have no responsibility for any debts of the company even if they have acted in the name and on behalf of the same. I am responsible for limited to the sum of money that invested in the share capital to create the company.
What is a srl and how it works
A limited liability company is constituted with a notarial deed, The company will thus appear in the business register; In this form of business, a separation between the personal assets of the shareholders and that of the company: In practice, if you have an Srl and the company ends up having debts, the risk is linked only the money invested in the company, not to your home or the bank account. The Srls are widely used for small and medium -sized enterprises, but also large companies choose them for their flexibility: in fact they easily adapt to the changes and needs of the company and have one management sufficiently slim.
Each srl to be established must have a share capital (i.e. the money that members invest to start the business). If this sum, called capital, is equal to or greater than 10,000 eurosyou have to pay at least 25% of the money in the constitutive phase, while the rest can be paid later. If the capital is Less than 10,000 eurosbut at least 1 euro, it can be established and all the capital in cash must be paid as soon as the document is signed with which the company is founded, but then money must be set aside to make a capital of 10,000 euros.
How is a srl managed?
A srl as mentioned, it has a leaner management than other types of companies and can be administered by a single person (sole director) or from several people (Board of Directors who works in unison, or with every administrator who can operate individually). Members may have gods “Special rights” concerning the administration of the company and the distribution of profits, even if sometimes it is already chosen in the statute (the document drawn up when the company that contains all the rules to be respected and all operations is founded) to insert a control body for the review of the accounts. Also in this case the intervention of the trusted notary can be very useful in order to better draw the organizational structure of the company. Finally, what very strengthens the management of the operations of the Srl is precisely that to make decisions, in some cases, it is not necessary to resort to an assembly but consent to document written and signed by all members may be sufficient.
What happens if the Srl melts?
Normally if the srl decides to “liquidate” voluntarilyan assembly would be organized by a notary and in charge of a “liquidator” (usually one of the administrators) who would take care of closing the accounts, paying the debts, collect the credits and cancel the company from the official register, without having to draw up further notary acts. Another peculiarity of this type of company is that you can issue debt securities similar to bonds However, unlike these, they can be purchased initially only by some types of investors, which are defined as “professional”, and a part of the debt amount that could then weigh on the shoulders of the company itself could be precisely made up of these securities.
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The risk of having to pay the debts personally
An important step that distinguishes, among other things, the limited liability company from individual companies or people of people is that the shareholders, as mentioned, are responsible only for the sum they have invested: in fact, if the company has been set up with 10,000 euros, as it is allowed, and then it accumulates debt up to 100,000 euros, however the shareholder risks only the money invested. But in some cases, creditors can try to “Exceed” the principle of limited liability, that is, trying to demonstrate that the administrators of the company have the company is poorly managed with negligence or fraudulently; If these irregularities were then ascertained then at that point the administrators would risk to fill the corporate debt held towards creditors with theirs personal heritage. Therefore it is vital that there is a corporate management transparent and clearshared among all the members, and that you are joined by specialists to get help in case of need.
