Under the Law, which applies in this respect to both S.A.’s and S.L.’s, either form of business entity can be set up as, or can subsequently become, a company having a sole shareholder (S.A.) or sole participation unit holder (S.L.), i.e. a wholly-owned subsidiary.

Such companies are subject to a specific regime involving special reporting requirements and registration requirements. For example, the fact that a company has a single owner has to be acknowledged on all company correspondence and commercial documentation. Likewise, contracts between the company and its sole owner need to be recorded in a special company register.

On the whole, such requirements can be deemed mere administrative and reporting requirements, but adherence to the specific rules is of paramount importance, because otherwise, under certain circumstances, the company can loose its limited liability status.