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Business in Spain
There are many ways to do business in Spain. Spanish law provides for a variety of vehicles that can be used by foreign companies or individuals for investing in Spain. However, the most common forms used are the corporation (S.A.) and, principally, the limited liability company (S.L.).
If no own legal personality is intended, then a Branch or permanent establishment can be implemented, meaning that their activity and legal liability will at all times be directly related to the parent company of the foreign investor.
A joint venture can also be considered, meant as an Association with other businesses already established in Spain. It allows the parties to share risks and combine resources and expertise. According to Spanish law, it can be
set up in many different ways, such as An Economic Interest Grouping (E.I.G.)
and a European E.I.G. (E.E.I.G.)
, a Temporary Business Association («Unión Temporal de Empresas» or U.T.E.)
, a silent partnership arrangement peculiar to Spanish law («cuenta en participación») with one or more Spanish entrepreneurs, or though Spanish corporations or limited liability companies.
Alternatives also exist when you don’t intend to set up a business, neither to enter into an association with existing business nor to establish a physical center of operations in Spain, for instance you can sign a distribution agreement, operate through an agent, through commission agents, or franchising.
Each of these forms of doing business in Spain offer different advantages that must be balanced, and in order to do so it is very important to rely on some good tax and legal.
Retail industry 30%
Banks & Financial institutions 30%
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