The reform of the companies act in Spain focuses on the urgency for listed companies to update their corporate governance systems and affects shareholders’ general meetings, director’s remuneration and board of directors among other. It came into force on the 1st January 2015.
The new Commercial code in Spain introduces certain changes in the pecuniary liability of owners of limited liability companies, the creditors’ meetings and the transfer of the company as a whole.
The process for establishing a partnership requires a private contract, a public deed, a tax on property transfers on certified legal documents and a Spanish tax identification number. This is then implemented through various regional instruments e.g. Spanish Tax Agency.
Legal advice for Chinese investments in Spain
The Spanish Ministry of Finance is placing a special emphasis on sectors which higher tax risks. Their focus is on new areas of activity or business modalities, companies formed as a result of new technology, and legislative changes or modifications in the behabiour of taxable subjects or taxpayers.
The most important disadvantage of partnerships in Spain is the unlimited liability of partners for the debts of the partnership. Furthermore, taxation for partnerships is considerably higher. Therefore business owners usually transform the partnership into another type of company.
Before establishing your business in Spain it is advisable to consider which kind of company might best suit your interests and may be your best option. Spain offers different types of business entities to start a business: limited liability company, public limited company, partnership, new enterprise limited company, etc. each one has different set of legal and fiscal responsibilities.
The Consumer Protection Act in Spain (Ley General de Protección de los Derechos del Consumidor o Usuario or LOPD) grants consumers and users protection. The reform of the Law on July 2014 introduces modifications regarding contracts with consumers and reinforces the protection of consumers.
A Partnership in Spain is a recommended choice for small businesses that prefer simple management and minimal investment. Partners bear personal and unlimited liability for third-party debts. Its establishment is simpler and more cost-effective than a company, with no mandatory registration or minimum initial capital requirement, except for specific contributions.
Before establishing a partnership in Spain it is important to know whiFor a partnership in Spain, the liability of the partners for debts against third parties is personal and unlimited, and its formal establishment is simpler and cheaper than a company. This article lists the process for establishing a partnership as well as its implementationch are the steps to follow and the requirements established by the Spanish government.
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