The most common companies types: A comparison between Limited Liability Company "EIRELI" and "LTDA"

ltda vs eireli
04 Oct
The most common companies types: A comparison between Limited Liability Company "EIRELI" and "LTDA"

In Brazil, there are three types of company structure: Ltda (limited company), EIRELI (Limited liability company) and S/A (anonymous society). Below you can find the differences between Ltda and EIRELI:

 

  LTDA EIRELI

OWNERSHIP
 		 - At least 2 partners - Only one quotaholder
QUOTAHOLDERS - Quotaholders can be individuals or legal entities
- Quotaholders can own in many Ltda as he wants
 		 - Quotaholders can be only individuals
- Can own only one EIRELI
 
CAPITAL - No minimum capital
- No obligation to pay up-front
 		 - Minimum capital equivalent of 100 minimum salaries
- The capital should be paid up-front
 

 

In case the business is not going to succeed, all of the belongings of the owner will be protected both in Ltda and in EIRELI.These two types of legal entity are very similar, precisely because EIRELI was created after the Ltda with the objective of having almost the same structure but with only one Quotaholder. 
 


 

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