Foreign investors who want to start a company in Spain can set up one of the legal entities available under the Spanish legislation. One of the ways in which they can invest in Spain is through a partnership (sociedad civil), a form of business which is established by at least two partners who contribute with a specific sum of money or other types of assets (equipment, labor). Our team of lawyers in Spain can offer an in-depth presentation on the main characteristics of a partnership, as well as on the legal aspects related to its registration.
What is a partnership in Spain?
A partnership in Spain is incorporated to accomplish specific business purposes, for which the partners are fully liable. The profits of a partnership are divided between the founders in accordance with the stipulations they have agreed upon when they have set up the company.
The partnership is regulated by a partnership agreement in which the founders will express specific regulations. However, aspects which have not been included in the agreement will be dealt with in accordance with the regulations of the Spanish Civil Code. Our team of attorneys in Spain can offer more details on the main provisions which must be included in this type of agreement.
Spanish partnership – legal requirements
An important aspect when starting a partnership in Spain is that the company should become an official legal entity only when its activities are related to real estate, because, as a general rule, the partnership lacks a legal personality, being established under a collaboration contract between the parties. At the same time, the partnership is not seen as a commercial company.
In this sense, we mention that a Spanish partnership will not need a minimum capital and the partners can contribute with a capital they agree upon.
Still, it is necessary to register the partnership agreement in front of a public notary in Spain, who will testify that the entity respects the applicable regulations.
Another relevant aspect is that all partnerships in Spain should contain the words “sociedad civil” in their business name.
We invite entrepreneurs to contact our law firm in Spain for more details related to the documents the partners should provide when opening a partnership.