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Spain legal business forms

Done by: Javier Lopez Perez

GDP

GDP at current market prices of selected European countries in 2021

Spain's economy is the fourth largest in the European Union and the fourteenth largest in the world.

Spain´s Economy

Spain Economic Sectors

Spain´s Sectors

Business forms

Inside the different types of companies, in Spain we can find these ones with their own characteristics.

Business forms

Partnerships

Partnerships

The capital is divided into shares.

The maximum liability for each partner in the event of a debt of the company is the amount of capital he/she has contributed.

The maximum liability for each partner in the event of a debt of the company is the amount of capital he/she has contributed.

They represent the 5% of the total amount of companies in Spain.

partnerships company is composed of:

general meeting of shareholders

an administrator of the company

a supervisory board

Limited Liability Company

Limited Liability Company

This type is the most widespread type of commercial company in Spain, and is widely used by small self-employed entrepreneurs who limit their liability to the capital contributed.

The minimum capital is €3,000 and can be contributed in cash, in goods or even in rights.

Cooperative

A cooperative is an autonomous association of persons united voluntarily to form a democratic organisation whose administration and management must be carried out in a manner agreed by the members.

It represents the 1% of companies in Spain.

STEPS

Steps follow by companies to create

Steps of formation

Registering in the commercial register

Obtain tax number

Make the articles and memories

Open a bank account

Obtain certificate of incorporation

Corporate tax

Corporative tax

Generally speaking, most corporate entities in Spain are subject to a 25% corporate tax rate. And, as previously mentioned, resident companies in Spain have to pay tax based on their global income.

Of course, there are several exceptions to these rules. As of 2022, new companies only have to pay a 10% tax rate for the first two tax periods in which they turn a profit, down from the previous rate of 15%.

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