Set up in Spain. Traveling to Spain and doing business in Spain is increasingly common due to the attractiveness of the country in terms of culture, location, climate, the Schengen factor and instability in other areas lacking legal security and political stability.
The majority of our clients arrive in Spain aboard Emirates flights from the Middle East and in almost the vast majority of cases we can guess the type of company they will set up.
Set up in Spain – Types of companies
According to the central directory of companies, in Spain there are around 3,300,000 companies, of which:
- 87% are SMEs with 55.56% companies without employees;
- 02% have between 1 and 9 employees; and
- 13 of the companies have +250 employees.
Within the various legal forms:
- 27% are self-employed;
- 50% are limited companies;
- 51% take the form of community property; and
- 49% are public limited companies.
Hence, the majority of questions from our clients focus on the advantages and disadvantages of the LLC.
Advantages of the LLC when setting a company in Spain ·
- Reduced minimum share capital (EUR 3,000) ·
- Responsibility of the partners limited to their social contribution – unless titles are signed in a personal capacity or bad faith or crime is involved.·
- Protection in the transfer of shares, with a preferential subscription right.·
- That being said, the LLC cannot be listed on the stock market.·
- Easier incorporation procedures.·
- Less complexity in its operation.·
- The responsibility lies only with the administrators, not with the partners.·
- Contributions will only be subject to economic valuation.
Disadvantages of the LLC ·
- The share capital of the LLC must be paid with the incorporation of the company.
- Difficulty in obtaining financing – having reduced share capital.
- The fact of having limited liability of the partners can also prevent obtaining financing.·
- Accounting Obligations – the bureaucracy is less but it does not exempt from obligations.
For more information and to be able to choose the best option when opening a company in Spain, do not hesitate to contact us. Our team speaks Spanish, English, French and Arabic. Many of our readers ask us for information about the acquisition of properties in Spain, so we close this post anticipating your requests and invite you to visit this search engine.
We trust that this practical information is of assistance to understand the basics of setting up the most popular company in Spain. Evidently at disposal for any additional information or clarification. For more information about legalities in Spain kindly visit our Firm’s publications here. Also we do invite you to check our Managing Partner’s YouTube Channel addressing legalities in Spain and the UAE.
Disclaimer: This post is not legal advice but rather a post of general information and implementation.