FORMING A SPANISH COMPANY

If you intend to carry out any large-scale activity you may wish to form a Spanish company, or a branch of a foreign company, in order to do business in Spain.

You are allowed to do this as either a resident or non-resident.

If you have 60,000 euros in capital to invest, you can form a Spanish S.A, the equivalent of a British limited company or an American corporation where liability is limited to the amount of capital each investor has subscribed. These companies have «S.A » after their name.

Books must be audited yearly and registered at the Mercantile Registry as public documents, available for inspection by any citizen. You can consult the Mercantile Registry for information about any Spanish company with which you intend to do business. You can find out the names and address of the principal officers of the company and see its profits and losses for the previous year. Failure to file such an audited statement or to falsify any information it contains is an offence, punishable by fines.

If you form a company, its articles of association must be signed and registered with a Spanish Notary and the Mercantile Registry.

Formerly, one needed three shareholders and three directors to form a company, but under the new legislation a single person can incorporate himself.

If you form a company, you may be employed by it as a director, even if you own the company completely. The company will be liable for Spain's corporate Tax of 30 per cent on its profits.

You will need proper legal advice before you form a company in order to take advantage of the most efficient tax structure when you transfer funds.

At Perez Legal Group we will be able to assist you in forming your company.