July 2, 2019
What are the main differences between the ordinary limited liability company and the simplified limited liability company? Question that is often asked by those who must make a strategic choice for their business. Below is a brief analysis of the two legal forms.
Ordinary SRL, i.e. società a responsabilità limitata – establishment of an ordinary SRL takes place by public deed of a notary. The initial share capital of the ordinary SRL must be at least € 10,000 and can be fully paid up or at least to the extent of at least 25%. Contributions can be different from money.
For contributions in kind such as companies, properties and other assets, a special sworn report must be presented.
SRL Simplified, i.e. società a responsabilità limitata semplificata – in the case of SRLS, a notary, at no cost by law, has the sole task of checking the requirements of the articles of association which are standard. The share capital of an SRLS has a minimum limit and a maximum limit beyond which it cannot be increased, or from € 1 to € 9,999.
Contributions must be made in cash and must be paid in full upon establishment.
Low share capital could become a limiting factor if you want to get finance and credit from banks, for example. Furthermore, the articles of statute are standard and cannot be changed over the years, except by transforming the company into an ordinary SRL with the related notarial deed.
Another significant difference is that SRLS can only be established for an indefinite period, without expiry.
Finally, it should be highlighted that the tax management of SRL and SRLS is the same: