Glossary entry

Spanish term or phrase:

Copital social en una S de RL (LLC)

English translation:

Members\' (partnership) capital of an S de RL

Added to glossary by AltoSignificado
May 2, 2020 10:23
4 yrs ago
46 viewers *
Spanish term

Copital social en una S de RL (LLC)

Spanish to English Bus/Financial Finance (general)
Entiendo que el capital de una S de RL (LLC) no se divide en acciones (stock) sino en participaciones (interests). Quiero saber cuál es la traducción correcta de "capital social" en el caso de una S de RL: "membership interests" o "equity interests" porque en el documento también aparece "partes sociales". El contexto no es muy específico, es solo una tabla.

XXX, S. de R.L. de C.V.
Capital Social:
Socios
Parte Fija
Parte Variable
Total
Partes Sociales
%

Discussion

Meridy Lippoldt May 2, 2020:
I think the correct term for a US audience is"capital stock"

Proposed translations

10 hrs
Spanish term (edited): Capital social en una S de RL (LLC)
Selected

Members' (partnership) capital of an S de RL

'In descending order of Cl -confidence level, but quaere: in order of legal accuracy'-

I'll include a 'capital stock' weblink for AmE / CanE consumption, but my City of London recollection of drafting Articles of Partnership or a Partnership Deed vs. Articles of Assoc. or (US) Incorp. (whether or not an LLC) was that the ordinary, general or limited/ limited liability partnership has a partnership or partners' capital.

Again. UK-trained professionals should really have picked up on these points.

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Note added at 10 heures (2020-05-02 20:56:27 GMT)
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https://www.proz.com/kudoz/spanish-to-english/law-contracts/...
Example sentence:

Members’ Capital means, as of any date of determination, the amount that would be available for distribution to the Members pursuant to Sections 7 and 14 if the Company were to sell its assets at their values determined in accordance with Section 7.7

Each partner has a separate capital account that represents that partner's equity in the partnership.

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3 KudoZ points awarded for this answer. Comment: "Gracias Adrian. Ya había considerado el término "members' capital", así que me confirmaste que era correcto para el caso de una LLC. Solo quiero comentar para futuros lectores que la traducción de las sociedades mercantiles no es "straighforward", ya que sus las descripciones no coinciden al 100%. Lo mejor es consultar con el cliente cuál es el fin comunicativo de la traducción para elegir la mejor opción."
1 hr

share capital in an S.A. de R.L. (LLC or "Limited Liability Variable Stock Corporation")

This means:

See previous kudos below

Sociedad de Responsabilidad Limitada de Capital Variable. You can put that in ( ) afterwards, but leave the "S.A. de R.L. de C.V." as is because it is a specific corporate form under Mexican law.
Note from asker:
Thank you. I know that I don't have to translate the S. de R.L, de C.V., I just wrote the translation as a reference. I'm not sure about the option "share capital", since a S. de R.L., just like an LLC, cannot issue shares of stock, which is what "share capital" means. https://www.investopedia.com/terms/s/sharecapital.asp
Peer comment(s):

neutral philgoddard : It's not an LLC.
3 hrs
Thanks for the comment
neutral Michael Grabczan-Grabowski : I was going to agree, until the asker's note about not issuing shares. After some digging, I see references are made to "holdings" in the "capital stock," and that such "holders" are referred to as "stockholders." I do believe it is like an LLC, though.
5 hrs
Thanks for this, I really appreciate it :)
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13 hrs
Spanish term (edited): Capital social en una S de RL (LLC)

company capital/equity capital/owner's equity in a limited liability company (S. de R.L. de C.V.)

While it is true that "capital social" is often translated as "share capital" (UK) / "capital stock" (US), this is usually more appropriate for corporations (US) / public limited companies (UK) / sociedades anónimas, which issue interests known as "acciones" (shares/stock) that are negotiable.

In a Mexican S. de R.L. de C.V. these are known as "partes sociales" and are not negotiable.

From a UK/US perspective we'd still call them "shares", but clients sometimes insist on making the same distinction (between "acciones" and "partes sociales"/"participaciones" in Spain) in English.

So ideally, you'd want another term in English to avoid shares/stock, which could create confusion if your text makes reference to "acciones" further down the line.

Hence my suggestions "company capital", "equity capital", "owner's equity" to refer to the capital in a Mexican S. de R.L., which is divided not into "acciones" but "partes sociales". I think any of the three options would work.

For "partes sociales" you could use "equity interests", "member holdings" or even, more literally, "equity participations" or "participation units". The idea is to maintain a distinction from "acciones" (shares/stock), as required under Mexican/Spanish law.

Allow me to point you in the direction of several similar KudoZ questions; Rebecca Jowers gives several excellent explanations based on Spanish company law, which are well worth reading:
https://www.proz.com/kudoz/spanish-to-english/law-general/31...
https://www.proz.com/kudoz/spanish-to-english/finance-genera...
https://www.proz.com/kudoz/spanish-to-english/finance-genera...

These pages might also be useful:
https://difiere.com/diferencia-sa-de-cv-y-s-de-rl/
http://www.yucatancompass.com/articulo-lo-que-debes-saber/26...
Note from asker:
Gracias Joshua. Estaba a punto de elegir tu propuesta, hasta que en otro foro me aclararon que "equity" es el equivalente de "campital contable", lo cual no aplica en este contexto. Sin embargo, "company capital" sí podría ser una buena opción.
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+1
6 hrs

Holdings in the capital stock of a Mexican non-negotiable stock limited liability corporation

This suggestion is for a US audience.

See the various options you get in the following Linguee search:
https://www.linguee.es/espanol-ingles/search?source=auto&que...

Some official sources avoid the use of the term "share capital" and instead use "holdings in the capital stock." I think the latter works well in this case.

The "non-negotiable stock limited liability corporation" part I found from a legal firm's website: http://www.lawmexico.com/wp-content/uploads/2016/01/Mexican-...

The "non-negotiable stock" part of the name refers to the fact that the stock cannot be transferred to any other party. This might be the more precise translation you are looking for in this case (again, for a US audience.)

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Note added at 6 hrs (2020-05-02 16:59:55 GMT)
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Sorry, my suggestion should rather read "Capital stock of a Mexican non-negotiable stock limited liability corporation."

Instead of shares, stockholders have holdings in the stock of the company. As EirTranslations suggested, you can leave the "S. de R.L. de C.V." and put in brackets next to it (Mexican non-negotiable stock limited liability corporation.) I just didn't have enough space to put that as an answer (it didn't allow me.)

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Note added at 9 days (2020-05-12 01:05:53 GMT) Post-grading
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Tienes razón. Creo que hay mucha confusión en el mundo de habla inglesa entre los significados de stock, capital y shares, lo que hace difícil a veces distinguir estos términos al traducir documentos de otros países.

Además de los aportes de Adrian y Joshua, también me he encontrado con las opciones de holdings y ownership interests, que tienen una asociación menos obvia con las acciones.
Example sentence:

As a Mexican non-negotiable stock limited liability corporation does not issue shares, it does not have shareholders; instead, it has stockholders.

Note from asker:
Gracias Michael. Sigo sin estar de acuerdo con el término "stock", ya que una S. de R.L. no emite acciones.
Peer comment(s):

agree EirTranslations
1 hr
Thanks for the feedback!
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