They are companies dedicated to carrying out civil or commercial activities, under an egalitarian company name. One of its characteristics is that for its creation the presence of two or more partners is necessary, who will have the responsibility of complying with all debts that could not be covered with the capital stock.
In this kind of company there are two types of partners: those who contribute their private work, called industrial partners; and the capitalist partners who are the ones who contribute both labor and capital.
The industrial partners do not intervene in the administration of the company, however they do have a share in the profits generated in the company, they will be granted the same benefits as the capitalist partners. For their part, the capitalist partners are in charge of the administration of the company.
The companies in a collective society differ from others such as the public limited company or the limited liability company, in the fact that the obligations with the debts are unlimited, that is, in the event that the capital contributed is not enough to fulfill With them, the partners will have to respond with their own assets to remedy the outstanding debts.
This is one of the oldest company companies that exist, although its unlimited nature in terms of the responsibility of its partners has made the constitution of this type of company disappear little by little.
Its most representative characteristics are: the right of the partners to participate in the management of the company. The partners are obliged to comply unlimitedly with the debts contracted. The company can be dissolved by the death of one of the partners, unless there is a document where the continuation of the company with the heirs of the deceased is expressed.
The status of partner cannot be freely transferred, for this the approval of the other partners is necessary. The duration of the companies in a collective partnership is limited. The name or company name must include the name of one or all of the partners, followed by the expression "collective partnership" or, failing that, the initials "SC"
