All legal persons (Companies) have the obligation of being constituted within the tax regime and meet all the “corporate” obligations. Read on to find out more about this.
In addition to the tax obligations which are paid monthly and anually by all companies, there are some other “Corporate” obligations which must be met, at least once a year.
All the Legal Persons must have in their posession since the constitution of the company their Corporate Books, as well as the issuance of their placements of shares.
MINUTES BOOK, BOOK OF SHARE REGISTRIES AND BOOK OF VARIATIONS OF CAPITAL
These documents will register, contain and back up the activities of your business, their economic, tax and financial records, its corporate structure, its corporate governance, the granting of powers, shareholding, the social capital, among other things.
Every year, after presenting the Annual tax statement, an Ordinary General Assembly is required, where some basic ítems must be revised: the approval of financial statements and the balance of the previous year.
This is done in order for the partners to be able to endorse the performance of the company and their executives during the year. This document must be contained in the Book af Assemblies, and be signed under the Notary Public.
The Assemblies, ordinary or extraordinary, are the instrument to aprove and/or modify the structure anf functioning of the company. Through them the partners can grant or revoke powers, make investment agreements, modify the activity of the company, admit new partners, increase the capital, among many other things.
The authorities can inspect the legal activities of any company, and require the books to be updated. If these are not, a fine shall be set.
Moreover, in the absence of the Books, the problems within the company can become much more serious, such as disputes between partners, legal proceedings, and inheritance issues.
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