Doing business

Spain

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Sociedad de Responsabilidad Limitada (S.L.), limited liability company. 3,005.06 EUR minimum fully subscribed and fully paid up.	Minimum 1 partner Responsibility limited to the contribution amount.
Sociedad Anonima (S.A.), limited company (Incorporated). 60,101.21 EUR minimum, fully paid up minimum up to 25% of the total constituted amount.	Minimum 1 partner Responsibility limited to the contribution amount.
Sociedad Colectiva, company in a group's name. No minimum capital.	Minimum 2 partners. Liability is joint and several and unlimited towards third parties.
Sociedad comanditaria, mixed liability company (limited partnership) No minimum capital.	There are 2 types of partners, the active partners and the sleeping partners. The responsibility of active partners is unlimited. Responsibility of sleeping partners is limited to their contribution amount.

Business setup procedures

Setting up a company	Spain	OECD
Procedures (number)	10.0	5.6
Time (days)	47.0	13.8

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Spain.
Central Trade Register
Crear-empresas
The competent organization: National Trade Register

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	73,293	9,135	24,547
FDI stock (millions USD)	623,215.0	634,909.0	614,473.2
Performance Index*, ranking on 141 economies	59	114	-
Potential Index**, ranking on 141 economies	28	-	-
Number of Greenfield investments***	548	387	-
FDI inwards (in % of GFCF****)	15.9	9.9	-
FDI stock (in % of GDP)	39.1	45.9	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Spain

Strong points: The country's main strong points are flexibility and adaptability of economic operators and in the quality of life the country offers.
Weak points: The country's weak points are the low productivity of its manpower, its weak competitiveness as well as a growing trade balance deficit. The complexity of the regulation system with regard to the 17 Autonomous Communities is also a hindrance to investment.
Government measures to motivate or restrict FDI: Spain applies the principle of free establishment and non-discrimination. Foreign investors can operate any type of business and under the same conditions as a local investor. The CEE Council Directive no. 88/361/CEE dated June 24, 1988, concerning the free movement of capital between the residents of member States was adopted in the Spanish legislation by Law no. 18/1992 of July 1, 1992, and came into effect on July 4, 1992 and by Royal Decree 1816/1991 no. 1816/1991 of December 20, 1991 on Foreign Economic Transactions.

The gaming, television, radio and air transport sectors are protected by restrictions for the investors residing outside an EU member country; it is the same for businesses manufacturing and selling arms. In the latter case, these restrictions also concern investors within the community.
Bilateral investment conventions signed by Spain: Spain has signed bilateral agreements with more than fifty countries. 47 agreements can be downloaded from the website of UNCTAD: click here to download these agreements. They define the framework for foreign investment protection in Spain for each of the signatory countries.

Procedures relative to foreign investment

Freedom of establishment: Yes.
Acquisition of holdings: The acquisition of majority interest by a foreign company in a Spanish company is authorized provided that the business is not in the regulated sector of production and trade of weapons.
Obligation to declare: Investment portfolios from an EU member state are exempt from all declarations whatever their amount. Direct investments can require a prior declaration, when the investment amount or the granted loans exceed 30,000 Euros for a foreign interest holding higher than 50%. The request is to be made with the Register of Foreign Investments, from the Directorate General of Commercial Policies and Foreign Investments (DGPCIE).
Competent organization for the declaration: Sub-secretary of state for Commerce
Requests for specific authorizations

Finding assistance for further information

Investment aid agency: Interes
Other useful resources: The investment aid agencies of the autonomous communities