{"id":5274,"date":"2016-01-22T08:00:57","date_gmt":"2016-01-22T08:00:57","guid":{"rendered":"http:\/\/www.asociacion-eurojuris.es\/en\/?p=4880"},"modified":"2020-04-11T07:15:58","modified_gmt":"2020-04-11T07:15:58","slug":"legal-forms-of-company-formation-in-spain","status":"publish","type":"post","link":"https:\/\/www.asociacion-eurojuris.es\/en\/legal-forms-of-company-formation-in-spain\/","title":{"rendered":"Legal forms of company formation in Spain"},"content":{"rendered":"<p style=\"text-align: justify;\">Whoever wants to invest in Spain can choose between different legal forms, with regard to the legal framework of his or her company formation. Spanish law distinguishes between corporations, partnerships and other legal forms.<!--moreLegal forms of company formation in Spain--><\/p>\n<h2 style=\"text-align: justify;\"><strong><span style=\"color: #000080;\">Partnerships in Spain<\/span><\/strong><\/h2>\n<p style=\"text-align: justify;\">Partnerships, while uncommon, include a general partnership (Sociedad Regular Colectiva, S.R.C.) and a limited partnership (Sociedad Comanditaria Simple, S.C.\/S.Com.).<\/p>\n<h2 style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>Different Corporations<\/strong><\/span><\/h2>\n<p style=\"text-align: justify;\">Corporations, which are more common, include a stock company (Sociedad An\u00f3nima, S.A.), a limited liability company (Sociedad de Responsabilidad Limitada, S.L.) and a partnership limited by shares (Sociedad Comanditaria por Acciones). Furthermore, the new business limited company (Sociedad Limitada Nueva Empresa, S.L.N.E.) is a new form of a limited liability company.<\/p>\n<p style=\"text-align: justify;\">The main legal source is the Spanish Corporate Law (Ley de Sociedades de Capital, LSC).<\/p>\n<h2 style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>Individual entrepreneurs and freelancers<\/strong><\/span><\/h2>\n<p style=\"text-align: justify;\">Additionally, there is the possibility of working as an individual entrepreneur or freelancer (Empresario Individual\/Aut\u00f3nomo).<\/p>\n<p style=\"text-align: justify;\">Main features of the legal forms of company formation in Spain<br \/>\nThe main features of the most common company types are analysed below:<\/p>\n<h2 style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>Minimum number of shareholders<\/strong><\/span><\/h2>\n<p style=\"text-align: justify;\">The minimum number of shareholders for an S.A, S.L, S.L.N.E. and an individual entrepreneurship is one shareholder. It is important to note that for an S.L.N.E., the maximum amount of shareholders is five (natural persons). Establishing an S.L.N.E. by a single person is permitted without requiring any additions to the company name (in contrast to an S.L. and S.A., which require the specific addition \u201cSociedad Unipersonal\u201d, meaning single member company). However, the founder of an S.L.N.E. is not allowed to be the single founder of another existing S.L.N.E.<\/p>\n<h2 style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>Equity<\/strong><\/span><\/h2>\n<p style=\"text-align: justify;\">There is no minimum amount of required capital for individual entrepreneurs. Forming an S.A. requires at least 60.000 \u20ac (not to be entirely disbursed). Establishing an S.L. requires at least 3000 \u20ac (to be entirely disbursed). Lastly, an S.L.N.E. requires a minimum capital of 3.012 \u20ac (to be paid by cash deposit). It is important to note that the maximum capital for an S.L.N.E. is limited to 120.202 \u20ac; otherwise, it converts to an S.L.<\/p>\n<h2 style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>Liability<\/strong><\/span><\/h2>\n<p style=\"text-align: justify;\">Whereas an individual entrepreneur is liable with his entire property, the liability for an S.A, S.L. and S.L.N.E. is limited to the paid capital.<\/p>\n<p style=\"text-align: justify;\">Procedure and costs of company formation in Spain<br \/>\nTo establish a company, certain modifications exist for different company types.\u00a0 The following procedural steps must be followed (some of them can be completed electronically, accelerating the formation process).<\/p>\n<h2 style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>Reservation of the company name<\/strong><\/span><\/h2>\n<p style=\"text-align: justify;\">The company\u2019s name can be freely chosen with the limitation that another company, in order to prevent confusion, does not already use the name. Three to five name possibilities must be given to the Central Commercial Register to verify that a name is not already in use. In the case of an S.L.N.E., the name of the company must consist of the Name or Surname of one founder, a number code and the addition \u201cS.L.N.E.\u201d<\/p>\n<h2 style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>Notarial Certification<\/strong><\/span><\/h2>\n<p style=\"text-align: justify;\">The formation of a company must generally be notarized. No notarial requirements exist for individual entrepreneurships (with the exception of the operation of merchant ships).<\/p>\n<p style=\"text-align: justify;\">Registration in the Commercial Register<br \/>\nAs long as a registration in the competent Commercial Register is required, the company can only acquire legal capacity with its registration.<\/p>\n<h2 style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>Founding costs<\/strong><\/span><\/h2>\n<p style=\"text-align: justify;\">In Spain, additional costs for company formation are incurred for notarial certifications, registration in the Commercial Registers and processing fees. The specific amount depends on the share capital. For a capital of 60.000 \u20ac, the costs are approximately 4.200 \u20ac. For a capital of 25.000 \u20ac, the costs are approximately 3.000 \u20ac.<\/p>\n<p style=\"text-align: justify;\"><strong>Britta Dotterweich &amp; Karl H. Lincke<\/strong><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Spanish Corporation Law (Ley de Sociedades de Capital, LSC) distinguishes between the legal forms of a corporation, partnership and individual entrepreneurship when forming a company in Spain.  This is a list of the main features regarding shareholders, equity, liability, founding costs, name assignment and notarial certification. <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1064],"tags":[],"class_list":["post-5274","post","type-post","status-publish","format-standard","hentry","category-pubications"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Forms of company formation<\/title>\n<meta name=\"description\" content=\"The most common company forms to invest in Spain are corporations, partnerships and individual entrepreneurships.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/www.mariscal-abogados.com\/legal-forms-of-company-formation-in-spain\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Forms of company formation\" \/>\n<meta property=\"og:description\" content=\"The most common company forms to invest in Spain are corporations, partnerships and individual entrepreneurships.\" \/>\n<meta property=\"og:url\" content=\"http:\/\/www.mariscal-abogados.com\/legal-forms-of-company-formation-in-spain\/\" \/>\n<meta property=\"og:site_name\" content=\"Eurojuris Espa\u00f1a\" \/>\n<meta property=\"article:published_time\" content=\"2016-01-22T08:00:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-04-11T07:15:58+00:00\" \/>\n<meta name=\"author\" content=\"Mariscal &amp; 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