Ancillary services in LLCs

What are ancillary benefits?

As we usually do in this type of article, we'll start by looking for the definition of the central theme, in this case, the definition of ancillary services.

Ancillary services are non-monetary contributions that the partners of a limited liability or anonym company voluntarily cede. In this definition, it is interesting to highlight the words “non-monetary”because that, precisely, is the crux of the matter: partners cannot contribute capital (extra money) to the company; what they contribute is either their time or a range of personal or professional products or services that add value to the company, improve its operation, increase its competitive capacity, etc.

Some important facts to remember about ancillary services:

• Ancillary benefits are not part of the company's share capital, but they are part of its social heritage as they are part of a vital company asset: its “Know-How”o, in Spanish, its“know-how”.
• Each and every ancillary benefit must be agreed and consensual by the partners and be well described in the company's memorandum or articles of association.
• Ancillary services may have free or remunerated character. In both cases, this circumstance must be clearly defined in the deeds or in the company's founding statute, adding all types of clauses additional information regarding the conditions to be met: what type of ancillary benefits are permitted, which partners will contribute, when and how, etc.

Types of ancillary services

There is three main groups of ancillary services Which can contribute enormously to the social and economic success of an SRL or Limited Liability Company:

1. Ancillary benefits in the form of working time. A partner who contributes their personal time and dedication to the completion of productive, commercial, distribution, etc. tasks.
2. Ancillary services in the form of services rendered. The partner who provides, for example, catering services, corporate design, company computer repairs, the company's blog article writing, etc.
3. Ancillary benefits in the form of assigned products. The partner who provides products for the company's use. This would be the case, for example, of a partner who owns a small mobile phone company and provides the devices the other partners need for work free of charge.  

What are ancillary benefits for?

As we noted in the previous section, ancillary benefits do not increase the company's share capital and Nor do they serve to improving its liquidity, cover debts, etc. So... What are they for?

Ancillary services do not directly increase the capital, but they do Yes, they do it indirectly. as they serve to improve the company's know-how, its public image, etc., and all of this can be translated into a greater economic performance of society.

Furthermore, although these benefits do not add up to capital (money), they do serve to save the cost of the goods supplied or services provided by the partners and which would have to be contracted and paid for by professionals or companies external to the company.

The Companies Act 2006.

Additional benefits in Limited Liability Companies or SRLs are regulated in the Capital Companies Act, specifically in the Article 86 from Royal Legislative Decree 1/2010, of 2 July.