In Spain, shelf companies are, in practice, often used to circumvent the lengthy formalities of incorporation. Saving time and less risk are their biggest advantages. On activation of a shelf company, all the shares must be purchased and its bylaws must be amended and adjusted to align with the company’s business purpose. The final step is the publication of the economic re-establishment at the Spanish Registry Court.
To start a business in Spain, the choice of the appropriate legal form is crucial. In Spain, the main corporate forms are sole proprietor, partnership or corporation. Differences are present especially in the cost, time and liability.
Investments in real estate funds in Spain are currently attractive due to low interest rates. For individual investors, there exists the advantage of being able to invest in real estate funds in larger projects such as shopping malls or office complexes. There is a distinction between open and closed real estate funds.
According to corporate regulations in Spanish corporations, the remuneration of the members of the Board of Directors must be approved during the annual general meeting, at least once every three years.
Managers of a company assume liability for actions against third parties. Under the rules of the Spanish General Taxation Law, the Spanish Treasury can hold them accountable for the company´s unsettled tax debts.
The CIRBE (Centre of Risk Information of the Bank of Spain) is a public and confidential data base that collects information about direct and indirect risks for amounts greater than 6000 euros that credit entities have with their clients. Whenever a correction of information is needed, companies have three different possibilities to make a complaint.
The aim of business succession regulation is to reinforce the guarantees of workers facing ownership changes, improve information resources and consultation, and increase participatory rights. A business owner must duly seek advice since he or she must take responsibility for pension commitments that workers have in accordance with specific regulations, as well as the various forms of supplementary social protections that the workers have may been endowed with (policies for civil responsibility, life, work-related accidents, temporary disability, help, etc.)
The incorporation of a new company in Spain to undertake consumer credit activities does not require a specific regulatory license given that the new company will not be incorporated as a credit institution.
Article 12 of the Worker’s Statute regulates the completion of complimentary hours in Spain. Complimentary hours are those that surpass the ordinary working hours and are previously agreed to by the company and employee in writing, either at the signing of the part-time contract or afterwards.
The main characteristic of Spanish Entities Holding Foreign Security is the tax exemption with regards to dividends and capital gains. This constitutes an important incentive for those interested in establishing holding entities in Spain.
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