Civil society is a private figure in which two or more people are obliged to pool resources in order to share possible profits with each other.
In general, civil society is an agreement between the parties whereby several people pool money, assets and other assets to achieve a common goal that must be lucrative in any case for everyone based on the contribution of each. .
Being a private and secret pact between the parties and not a mercantile company such as a limited company, limited partnership … is regulated by the Civil Code, and the actions of the partners are individual vis-à-vis third parties, there is no legal personality.
It has the following general features:
- It must be made up of two or more people.
- The birth of civil society is born when the pact is signed.
- It must have a common purpose and of a lawful nature.
- The common object has to be to make a profit.
- All partners must participate in the profits and losses.
- It can have capitalist or industrial partners, contributing the first goods and money and the second work or industry.
- The partners are taxed individually through the personal income taxand as self-employed , not the company as a whole.
Types of civil society
Depending on the organization, there are different types of civil society:
- Particular civil society:they aim at a concrete and defined thing, such as the exercise of a profession, the harvesting of fruits of work or an action.
- Universal society of all present assets: all present assetsbecome property of all partners, but not future inheritances, donations and the like, although the fruits obtained with them do.
- Universal society of all profits:the current and future assets that the members obtain from now on as well as their income become common to all the partners.
Also according to the formalization, there can be different types of companies:
- Public civil societies: itis constituted by means of a public document before a notary, which gives it a certain legal personality.
- Private civil companies:there is no legal personality as the pacts are between private and secret partners.