The Community of Properties (CB) is the simplest form of association between self-employed workers with a common project, making it a recommended option for small businesses.
What is a Community of Properties?
When two or more self-employed individuals decide to form a partnership and start a shared business project, one of the options they should consider is the possibility of creating a community of properties, since it is the simplest legal way to associate.
In practical terms, we can define the Community of Properties as a private agreement between several self-employed workers called “community members”, who maintain their self-employed status, with all that this implies, and who hold the property and ownership of a thing, or right pro indiviso, by which they obtain a benefit or expect to obtain it through a business activity.
It is a recommended option for small businesses that do not require large investments and in which it is preferable to keep the greatest simplicity in the administration that being self-employed involves.
In the CB, in the case of a company, registration in the Civil Registry is not necessary, nor is it necessary to contribute a minimum capital to start the activity, as we will now see and it is formalized with a private contract (with some exceptions).
In addition, with this formula, self-employed workers can set themselves up as self-employed individuals; being able to take advantage of the flat rate discount. In this way, they will not have to pay the self-employed corporate fee from the very beginning, which currently stands at 367.80 euros.
The year 2019 ended with 116,391 communities of properties registered in Spain, according to data from the Spanish Institute of Statistics (INE). Barcelona, with 15,195, Madrid with 12,614, and by far Valencia, with 7,762 are the provinces that contribute the most associations of this type to the national total.
Contract Form
This Word template, designed by the Entre Trámites team, allows you to easily prepare the private contract. It includes the statutes of a community of properties and its operating regime.
It includes all the sections to be considered in a contract of these characteristics:
- Business activity.
- Contributions from each community member, which may be in cash or in species.
- Percentage of participation that each community member has in the profits and losses.
- The use of common elements and the administration system.
It is recommended that it be created in a public deed, which is necessary when real estate or property rights are contributed.
Capital Companies Law here