Civil society

economic-dictionary

Civil society is a private figure in which two or more people are forced to pool resources with the aim of dividing possible gains among themselves.

In general, civil society is an agreement between the parties whereby several people pool money, goods and other assets to achieve a common goal that must be profitable for all and based on the contribution of each one.

As it is a private and secret pact between the parties, and not a commercial company such as the public limited company (limited, limited or other), it is regulated by the Civil Code, and the actions of the partners are individual against third parties, and there is no legal personality. .

Civil society has the following general features:

  • It must be made up of two or more people.
  • The birth of civil society is when the pact is signed.
  • It must have a common purpose for all and of a lawful nature.
  • The common object has to be the achievement of a profit.
  • All partners have to share in the profit and loss.
  • It can have capitalist or industrial partners, providing the first goods and money and the second work or industry.
  • The partners are taxed through personal income tax individually and as self-employed, not the company as a whole.

Types of civil society

Depending on the organization, there are different types of civil society:

  • Private civil society: Their objective is a specific and defined thing, such as the exercise of a profession, collect the fruits of work or an action.
  • Universal society of all present assets: Present assets become the 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 partners obtain from now on, as well as their returns, become in common of all the partners.

Also, depending on the formalization, there may be different types of society:

  • Public civil companies: They are constituted by means of a public document before a notary public, which gives it a certain legal personality.
  • Private civil companies: There is no legal personality as the agreements between private and secret partners.

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