The Spanish Constitutional Tribunal concludes that the quantity of the judicial court fees (both the fixed and the variable fees) are disproportionate for companies and could dissuade them when it comes to lodging a complaint with Judicial Tribunals.
Company law and corporate governance refer to the appropriate company management and control structures as well as the rules which regulate the power relation between owner, administration board, etc. Its function is to protect the interests of the company and its shareholders and to eliminate, mitigate or resolve any conflict.
Useful information for entrepreneurs interested in the cross-border transfer of a company’s registered office, focusing on the practical aspects of cross-border transfers rather than on the technical details of the transfer itself.
Based on the Capital Companies Act governing in Spain, tribunals consider the absence of the director or directors of a company during general shareholders’ meetings as cause for the nullification of the meeting.
The Spanish patent box is not a Spanish company form, but a privileged form of investment for Spanish companies. Its purpose is tax savings for intellectual property income. Thus, the attractiveness of the business location in Spain and its internationalization is promoted. The legal basis is Article 23 of the Corporate Income Tax Law. The usual corporate forms include the Limited Liability Company and the Public Limited Company.
The purpose of an ETVE, a Spanish holding company, is to restrict the double taxation of income of Spanish companies. The aim of this special tax position is to promote the Spanish economy through tax cuts and the expansion of companies abroad.
Regarding personal and material resources, a Spanish holding company can not be an empty shell or a mere custodian of assets. Regarding tax privileges, the company is not subject to the regular commercial, corporate and value added tax.
Holding companies, also know in Spain as ETVE (Entidades de Tenencia de Valores Extranjeros (ETVE) are considered as one of the most competitive holding regimes in the European Union. Through the Spanish ETVE, companies achieve a tax-free profit transfer on their interests in companies at home and abroad.
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.
Managers of a company assume liability for actions against third parties. Under the rules of the Spanish General Taxation Law, the Spanish Treasury can hold them accountable for the company´s unsettled tax debts.