Impact of company abandonment in Spain on the system of managerial liability

PDF Eurofenix Autumn 2010 – Company Abandonment in Spain The Spanish legal system provides certain protections for creditors of companies that have in fact ended their commercial trading. These companies have been abandoned by their partners and managers, rendering them inactive, yet they have not dissolved and liquidated pursuant to the established processes established by […]

Changes to the small claims procedure in Spain

On the 4th of May 2010, the reform of the Procedural Law under Law 13/2009 actively came into being. While there are many new areas to be discussed under this law we wish first and foremost to address the issue of the proceso monitorio or small claims procedure. At the root of this reform one has […]

The Spanish LLC: advantages, disadvantages, and differences with a regular corporation

In addition to being one of the most common business organizations, the LLC corporate form is highly suggested for starting a small- to medium-sized business because of its more relaxed reporting or publication requirements, its relatively minimal initial capital requirement (about 3,006 Euros), and its limited liability for its members.  According to Mr. Lincke, a […]


Taxes on inheritance and gifts in Spain

The inheritance and gift taxes in Spain taxes the increase on wealth of a property, right or asset, the first one by reason of death of the transferor, the second one while still alive. Both must be paid by the beneficiaries, the amount will be vary depending on which autonomous community the asset is.

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Redundancies in Spain in times of crisis: economic and productive reasons

The Spanish Code of Labour Law (Estatuto de los Trabajadores) sets out a particular type of redundancy known as redundancy based on objective reasons. There are several reasons for which a company could carry out this type of redundancy. We are going to focus on the most common reasons, which usually take place during times […]

Spanish Insolvency Law: the responsibility of directors in a situation of insolvency

The Insolvency Law of Spain protects creditors in case of misconduct or negligence by directors (administradores) of a company in insolvency; such a disposition is specifically useful as it is of utmost importance for there to be confidence in the protection that the economic legal framework offers to creditors. When there is a company in […]

The new Capital Company Law in Spain

The council of ministers approved on the 2nd of July a the Redrafted Text regarding the Law of Capital Companies through the Royal Legislative Decree 1/2010, in which one legal document unifies the respective norms regarding public limited companies, limited-liability companies, public companies and partnership limited by shares, in other words all capital companies existent […]

How to start an SME in Spain

Developing a company in Spain requires not only knowledge of the Spanish legal system and traditions, but also awareness of those applicable existing European directives and international conventions.  Such a complex, two-tiered legal system calls for a thorough examination of how both Spanish and international laws will affect the beginning of a new business venture […]

Spanish law against late payments in commercial transactions

The Law establishing measures to fight against late payments in commercial transactions (3/2004 Law of December 29th) represents the culmination of a legislative process developed with the purpose of adapting the Spanish legislation to the content of  the 2000/35/EC Directive and drastically reducing the payment terms in the commercial field. This communitarian Directive, approved by the […]

Guidelines and tips to follow in an insolvency proceeding in Spain

This article explains some of the most relevant aspects of insolvency and debt collection proceedings. From a practical point of view, these concepts must be valued considering the possibility that an economic actor may have to participate in an insolvency proceeding when such economic actor is demanded to participate by a creditor, or when an […]