Types of Companies and Commercial Entities in Spain: Complete Guide

TA Lawyers
Types of Companies and Commercial Entities in Spain: Complete Guide

Types of Companies and Commercial Entities in Spain: Complete Guide

If you are thinking of starting a business in Spain, it is essential to know the different types of companies and commercial entities that exist. Choosing the right business structure can influence aspects such as legal responsibility, taxation, and business management. In this guide, we will explore the main legal forms available in Spain so that you can make an informed decision.

 

Sole Proprietor (Autónomo)

The sole proprietor, commonly known as an autónomo, is one of the simplest ways to operate a business in Spain.

Characteristics:

  • No minimum initial capital required.
  • The owner is personally liable for business debts.
  • Simple and quick incorporation procedures.
  • Subject to the Special Regime for Self-Employed Workers (RETA).

This structure is ideal for small businesses or independent professionals who want to start an activity without the need for partners.

Here you have more information about it. 

 

Commercial Companies

For those who want a business structure with greater asset protection, there are several options for commercial companies.

 

1. Limited Liability Company (SL or SRL)

It is the most common type of company in Spain due to its flexibility and shareholder protection.

 

Characteristics:

  • Minimum share capital: 3,000 euros.
  • Liability limited to the contributed capital.
  • Subject to Corporate Tax.
  • Governed by corporate bylaws and managed by an administrative body.

This form is suitable for small and medium-sized enterprises that seek to limit the personal risk of their partners.

 

2. Public Limited Company (SA)

It is mainly used for large companies that require higher capital and want to access investors.

 

Characteristics:

  • Minimum share capital: 60,000 euros.
  • Liability limited to the contributed capital.
  • Allows the issuance of shares and stock market listing.
  • More complex management, with strict accounting and tax requirements.

It is the ideal option for companies looking to grow and attract investors.

 

3. Cooperative Society

Cooperatives are jointly owned businesses where members participate in decision-making and profits.

 

Characteristics:

  • No mandatory minimum capital.
  • Liability limited to each member’s contribution.
  • Subject to Corporate Tax, although it may have tax benefits.
  • Profits are distributed among members according to their participation.

This model is ideal for collaborative projects with a strong social or community focus.

 

4. Limited Partnership

There are two main types of limited partnerships: simple and by shares.

 

Characteristics:

  • Composed of general partners (with unlimited liability) and limited partners (with liability limited to their contribution).
  • In the share-based form, capital is divided into shares, and limited partners do not participate in management.
  • Less common than other types of commercial companies.

It is a suitable structure for businesses where some partners prefer not to participate in active management.

 

Conclusion

Choosing the right legal form for your company in Spain depends on several factors, such as available capital, the level of responsibility you want to assume, and the business’s growth needs. Proper advice will help you make the best decision to ensure the success and security of your business project. From TA Lawyers, we will guide you to achieve the success you are looking for.