Business Administration in Spain

Overview by Globlatrade.net:

Setting Up a Company

Legal Business Entities

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability Registration Fees
Sociedad de Responsabilidad Limitada (S.L.), limited liability company.
 
 
3,005.06 EUR minimum fully subscribed and fully paid up.
Minimum 2 partners and maximum 50
note: A single partner for a sole proprietorship S.L..
 
 
Responsibility limited to the contribution amount.
Company's name registration: EUR 7-14; Constitution Act by a public notary: EUR 500; Payment of a fee to local authorities: 1% of capital; Inscription in the Trade Register: EUR 164; Editing Statutes: EUR 90; Obtaining a municipal license to open commercial buildings: EUR 6,350.
Sociedad Anonima (S.A.), limited company (Incorporated).
 
 
60,101.21 EUR minimum, fully paid up minimum up to 25% of the total constituted amount.
Minimum 3 partners.
note: This number can then be brought to 2 and then 1 shareholder.
 
 
Responsibility limited to the contribution amount.
Company's name registration: EUR 7-14; Constitution Act by a public notary: EUR 500; Payment of a fee to local authorities: 1% of capital; Inscription in the Trade Register: EUR 164; Editing Statutes: EUR 90; Obtaining a municipal license to open commercial buildings: EUR 6,350.
Sociedad Colectiva, company in a group's name.
 
 
No minimum capital.
Minimum 2 partners.
 
 
Liability is joint and several and unlimited towards third parties.
Company's name registration: EUR 7-14; Constitution Act by a public notary: EUR 500; Payment of a fee to local authorities: 1% of capital; Inscription in the Trade Register: EUR 164; Editing Statutes: EUR 90; Obtaining a municipal license to open commercial buildings: EUR 6,350.
Sociedad comanditaria, mixed liability company (limited partnership)
 
 
No minimum capital.
There are 2 types of partners, the active partners and the sleeping partners.
 
 
The responsibility of active partners is unlimited. Responsibility of sleeping partners is limited to their contribution amount.
Company's name registration: EUR 7-14; Constitution Act by a public notary: EUR 500; Payment of a fee to local authorities: 1% of capital; Inscription in the Trade Register: EUR 164; Editing Statutes: EUR 90; Obtaining a municipal license to open commercial buildings: EUR 6,350.
 
Business Setup Procedures
Statutes must be drawn up by a notarized deed. The relevant register is that of the province where the headquarters of the company is situated or the place where the branch is located. Foreign investors must obtain a negative certificate from the Central Trade Register to ensure that the company name is not already in use. A tax licence (CIF) is required on formation. Registration with Social Security and opening a bank account are compulsory. For further information, visit the website  Crear-empresas.com/.
The Competent Organization
National Trade Register
Search a Company or a Financial Report
Register of Spanish companies, in Spanish

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Working Conditions

Legal Weekly Duration
40 hours
Retirement Age
65 or 64 years.
Working Contracts
The labor contract can be written or oral; for an indefinite period or for a defined duration, training contract, relief contract, termporary contract for work or defined assignment.
For further information, please visit the website of INEM or refer the labor guide from the Department of Labor and Social Welfare.

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Cost of Labor

Minimum Wage
20 EUR/day, 600 EUR/month or 8,400 EUR/year
Average Wage
Average monthly gross earnings in Spain was 1,630 EUR in 2007.
Social contributions
Social Security Contributions Paid By Employers: 29.9%
Social Security Contributions Paid By Employees: 6.35%

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Social Partners

Social Dialogue and Involvement of Social Partners
There are about forty trade unions (general or regional) and a large number of sector-based / regional unions (gremios).
Unions
National Labor Union
Association of Trade Unions
Workers' Commission
Unionization Rate
Union membership is low: around 14%.
Labor Regulation Bodies
Department of Labor and Social welfare

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Find more on GlobalTrade.net about Operating a Business in Spain.
 
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Experts Views (2)
Hot Tips (1) Go Top
  • Pricing in Spain

    Pricing practices in Spain are similar to those of the United States, although markups tend to be slightly higher. Products and services in Spain are subject to Value Added Tax (VAT, or IVA in Spanish), which is presently 16 percent.

    U.S. Commercial Service Poland on 24 Feb 2010 related to Business Administration in Spain

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