A consortium is an association of two or more individuals, companies, organisations or governments with an objective of participating in a common activity or pooling their resources for achieving a common goal
Advantages of Consortium
- You can share your decisions on business activities with other partners;
- With these forms, you can manage medium- and large-sized companies;
- Your liability and that of your partners is limited to the value of the company’s share capital;
- The economic and financial management can be controlled more easily;
- Cooperatives enjoy lower tax rates.
Disadvantages of Consortium
- They are expensive types of companies;
- Decisions must be made following special procedures;
- They are required to draw up and submit a yearly balance sheet;
- They must be managed using an ordinary accounting method;
- They are incorporated by means of a written charter drawn up by a notary public.