Establish a Limited Liability Company in SpainUpdated on Monday 27th February 2017
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The limited liability company (LLC) is the most popular type of legal entity businessmen prefer to incorporate in Spain. The LLC in Spain provides numerous advantages in terms of the shareholder’s liability, and it also provides a high level of flexibility in terms of company’s statutory documents. Our team of lawyers in Spain can offer legal advice on the incorporation requirements and the legal steps which have to followed by both local and foreign businessmen.
Characteristics of an LLC in Spain
The LLC in Spain will require a minimum share capital of EUR 3,000, which must be fully deposited during the incorporation procedure. In this sense, we mention that all companies performing commercial activities in Spain are required to open a corporate bank account for their newly established business.
The capital of the LLC must be divided into shares. In an LLC, the shares can’t be transferred, but there are several exemptions, which apply to the transfer amongst the shareholders, or to the close relatives of the shareholders.
The Spanish LLC can be registered by minimum one shareholder, who can be represented by a natural person or a legal entity. In the situation in which the company is incorporated by a single shareholder owning full ownership of the shares, the Companies Registry will need to be notified. The institution will require documents related to the identity of the shareholder and our team of attorneys in Spain can offer more details on such documents.
Legislation on LLC in Spain
Spanish LLC falls under the regulations of the Law 2/1995 Sociedades de Responsabilidad Limitada.
Under the regulations of the Law 14/2013 – The Entrepreneur Law, the incorporation of an LLC in Spain was simplified, offering a more rapid regime for the registration of this type of entity.
However, the simplified procedure can be applicable only under certain requirements, for example, when the company is registered by a sole founder.
Businessmen are invited to contact our law firm in Spain for more details on the registration of a Spanish limited liability company.