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 in 2021
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.
If you are planning to invest in Spain in 2021, you must know that you can opt to register a simplified version of the limited liability company – the new enterprise limited company in Spain. As an investor, you should be aware that this company type can only be incorporated by shareholders who are natural persons, and that the shareholding structure can comprise a maximum number of 5 investors. Compared to the standard limited liability company, other differences can appear, related to the company’s trading name for instance.
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.