Obtaining a favourable judgment outside the EU is only the first step. To recover a debt or enforce rights in Spain, foreign court decisions must undergo exequatur proceedings before Spanish courts. This guide explains the legal framework, the competent court and key enforcement requirements.
Equity imbalance in a Spanish company represents a significant legal risk that may threaten business continuity. Understanding the corporate law mechanisms available to restore an equity balance is essential to avoid mandatory dissolution, preserve shareholder control and ensure financial stability in compliance with the Spanish Companies Act.
Organic Law 1/2025 introduces substantial changes to debt recovery proceedings in Spain: prior to initiating court proceedings, companies will be required to resort to ADR mechanisms, specifically confidential binding settlement offers, aimed at achieving swift and effective resolutions in commercial credit disputes.
Spain is one of the main gateways to the European and Latin American markets. For foreign businesses looking to establish a presence in Spain, a key strategic question often arises: Is it better to incorporate a new company or acquire a pre-existing shelf company? We analyse both options in terms of advantages, disadvantages, timeframes, and costs.
An intra-EU cross-border merger allows companies from different European Union countries to merge, facilitating economic integration and international expansion in Spain. These transactions fall under EU law and the Law on Structural Modifications of Commercial Companies.
In Spain, the sale of productive units within the framework of insolvency proceedings is subject to a specific legal regime. This sale ensures the continuity of business activities and the job security of the company’s employees. For investors, purchasing these units presents an attractive opportunity to develop economic activities.
In Spain, the Capital Companies Act establishes several requirements for being appointed as a director, such as legal capacity or absence of incompatibilities. However, neither Spanish nationality nor residence in Spanish territory is necessary for a person, whether national or foreign, to hold the position.
Foreign companies can achieve entry into the Spanish market through collaboration with local companies. This collaboration offers appealing advantages, such as the costs and risks reduction associated with their expansion. In this context, companies may decide establishing a temporary business association (UTE), a structure governed by Law 18/1982 dated 26 May 1982 in Spain.
The innovation and scalability characteristics of companies aiming to benefit from the Startup Law have recently been defined and developed in Order PCM/825/2023 of 20 July. It establishes the general presumptions and characteristics that startup applicants must meet to qualify and be certified as “startups” by ENISA.
The General Conditions of Sale constitute a fundamental contractual document for any company that wishes to operate in the Spanish market. These conditions vary depending on the type of client and the company’s sector of activity.
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