Types of Companies in Spain

Spain represents a viable opportunity for investors, as it has one of the most robust economies in the EU due to a strong inward investment. Also plenty of sectors are welcoming foreign investors, and the state of Spain guarantees equal and non-discriminatory treatment. Even though bureaucratic requirements are strict, foreign investors seem to be attracted by the economy and advantages presented by the state of Spain. The most common forms of business in Spain are the public and private limited liability companies.

Open a Public Limited Liability Company (Sociedad Anonima) in Spain
Limited liability companies are the most common forms of business organization as the incorporation procedure is not complex, and the structure of such a company is well designed for small to medium-sized businesses. The Spanish public limited liability company may be set by at least one person, or legal entity, foreign or Spanish. The minimum capital for a Spanish public limited liability company is EUR 60,101 of which 25% must be paid prior to registration. The members of such a company are liable to its debts and obligations only to the extent of their contribution. The stock of a Spanish public limited liability company may be enlisted on the stock exchange and shares are freely transferable.

Create a Private Limited Liability Company (Sociedad Limitada Laboral) in Spain
This company type is designated for larger business. It can be set by at least two members, or legal entity, foreign or Spanish. The stock of the company is provided through shares of a prior established nominal value. The members of a private limited liability company are liable to the company's debts and obligations only to the extent of each one's contribution. The stock of a Spanish private limited liability company cannot be enlisted on the stock exchange and its shares are not freely transferable, or sold to the public.

Form a General Partnership in Spain
The Spanish general partnership is a business entity established by at least two members who join together in business with the same purpose. All the partners are general, meaning they control the company, being fully liable to the partnership's debts and obligations. The partnership must be registered with the Spanish Commercial Register and it has to be incorporated before a public notary.

Open a Limited partnership in Spain
Spanish Limited Partnerships are also established by at least two partners, legal entities or natural persons of any nationality. They do not have to provide a minimum capital and the partnership must be registered with the Commercial Registry. In a Spanish General Partnership at least one member is a general partner, meaning he or she has the obligation to manage the company, while bearing an unlimited liability and at least one member is a limited partner, having a liability limited to the amount invested ion the company.

Create a Sole trader entity in Spain
A Spanish sole entrepreneur is an individual engaging in business activities on his or her own. This means he does not have to provide a minimum capital, but is fully responsible for the company's debts and obligations. A Spanish sole trader must register for tax, VAT and social security. There is no legal distinction made between the company and the owner.