Ownership eligibility in Spain, outlined in Royal Decree 664/1999 Article 2, is based on residency. Non-residents encompass Spanish citizens abroad, non-Spanish citizens living outside Spain, and corporate bodies located outside Spain, including non-Spanish public sovereign entities. Additional regulations on residency criteria and address changes are covered in Article 2 of Law 19/2003 dated July 4.
To address the provisions of Law 18/1992 dated July 1, which establishes certain norms regarding foreign investment in Spain, its sole article specifies that the “sectors subject to the law on establishment have their specific regulations.
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To circumvent temporary residency requirements for employees in Spain, foreign nationals starting a business may opt to enlist the services of local agents (Spanish individuals or companies) already possessing residency and employment authorization. These agents, familiar with the Spanish language, customs, and business practices, can play a crucial role during the company’s launch, leveraging their expertise to introduce the new venture to the region.
The Spanish Constitution, Workers’ Statute, and European Directives prohibit discriminatory terminations based on characteristics such as age, incapacity, birth, race, origin, civil status, sex, religion, political opinion, sexual orientation, or any other personal or social condition.
Spanish employment law differentiates between the suspension and termination of an employment contract. Suspension is a temporary interruption, such as when an employee takes temporary leave for family reasons. Termination signifies the permanent end of the employer-employee relationship, involving notice and compensation. While the termination processes for management personnel, regular employees, and agents differ under various laws, they share similarities.
The Government’s response to enhance the economic sustainability of electricity generation activities using solar thermoelectric and wind power technologies in Spain is reflected in the new Royal Decree (RD 1614/2010). Dated December 7th and published in the Official State Gazette (BOE) on December 8th, 2010, the decree came into force on December 9th, 2010.
The information provided outlines key employment-law considerations for foreign nationals establishing small- to medium-sized businesses in Spain. In summary, it emphasizes the need for a clear understanding of the employer-employee relationship, the rights of employees, and the early decision on hiring employees or agents. Additionally, a prompt initiation of the immigration process is advised due to potential lengthy visa and residency waiting periods.
To initiate the establishment of an LLC (Limited Liability Company) in Spain, you need to follow these steps:
Since September 1, 2010, Section 4 of Title 1 in Book II of the Commercial Code, pertaining to partnerships limited by shares, as well as the laws governing Public Limited Companies, Limited Liability Companies, and Title X of the Stock Markets Law concerning publicly listed companies, has been repealed.
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