Business cooperation and the entrance into the Spanish market are often controlled through joint venture agreements. A joint venture is not defined by Spanish law. To determine the legal requirements, general standards of the Spanish Civil and Commercial Code should be applied, particularly Article 1255 of the Civil Code.
Author Archive for: Karl H. Lincke
About Karl H. Lincke
As an Abogado & Rechtsanwalt, Karl H. Lincke is a Partner at Mariscal Abogados and specialises in M&A, Company law, TMT law and Real Estate law. Working languages: Spanish, German and English.
For any further enquiries please Contact us
Entries by Karl H. Lincke
The legal provisions laying down the basis for collective dismissals for economic reasons, as they were defined in the Spanish Workers’ Statute, infringe European Directive 98/59/CE and have undergone a change. Now, only the workplace that is affected by restructuring is regarded as the basis for individual and collective dismissals.
In Spain, shelf companies are, in practice, often used to circumvent the lengthy formalities of incorporation. Saving time and less risk are their biggest advantages. On activation of a shelf company, all the shares must be purchased and its bylaws must be amended and adjusted to align with the company’s business purpose. The final step is the publication of the economic re-establishment at the Spanish Registry Court.
To start a business in Spain, the choice of the appropriate legal form is crucial. In Spain, the main corporate forms are sole proprietor, partnership or corporation. Differences are present especially in the cost, time and liability.
Investments in real estate funds in Spain are currently attractive due to low interest rates. For individual investors, there exists the advantage of being able to invest in real estate funds in larger projects such as shopping malls or office complexes. There is a distinction between open and closed real estate funds.
According to corporate regulations in Spanish corporations, the remuneration of the members of the Board of Directors must be approved during the annual general meeting, at least once every three years.
The main legal forms to establish an activity in Spain have advantages and disadvantages. The correct choice will depend not only on the activity itself as well as on the capital amount you want to invest, but also on the number of shareholders among other factors.
EU Directive 2006/112/CE is crucial for tax liabilities of foreign online retailers in the Spanish market. After a foreign company exceeds a turnover of EUR 35,000 through sales to consumers in Spain, the VAT of the destination country of the goods (Spain) is raised.
The fall in the price of Spanish companies with a greater presence in the UK, the uncertainty in the banking sector, the reconfiguration of power in the European Union or the need for new trade agreements, are just some of the consequences resulting from the departure of the UK from Europe
Advertising through the media is more controlled than one may think. There are limits on how much advertisement can be shown on TV, as well as how advertisements must be displayed online. The bottom line is that a consumer must always be protected and must always know that what they are being subjected to is indeed an advertisement rather than merely information. The laws that govern advertisements are quite specific on how advertisements must be created and displayed. Therefore, a consumer is protected from any type of deceptive advertising.