Spain

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Operating a Business in Spain

Setting up a company | Working conditions | Cost of labor | Social partners

Setting up a company

Legal business entities

Types of companies and capital (max/min)	Number of partners/shareholders and liability	Registration fees
Sociedad de Responsabilidad Limitada (S.L.), limited liability company. 3,005.06 EUR minimum fully subscribed and fully paid up.	Minimum 2 partners and maximum 50 note: A single partner for a sole proprietorship S.L.. Responsibility limited to the contribution amount.	Company's name registration: EUR 7-14; Constitution Act by a public notary: EUR 500; Payment of a fee to local authorities: 1% of capital; Inscription in the Trade Register: EUR 164; Editing Statutes: EUR 90; Obtaining a municipal license to open commercial buildings: EUR 6,350.
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 3 partners. note: This number can then be brought to 2 and then 1 shareholder. Responsibility limited to the contribution amount.	Company's name registration: EUR 7-14; Constitution Act by a public notary: EUR 500; Payment of a fee to local authorities: 1% of capital; Inscription in the Trade Register: EUR 164; Editing Statutes: EUR 90; Obtaining a municipal license to open commercial buildings: EUR 6,350.
Sociedad Colectiva, company in a group's name. No minimum capital.	Minimum 2 partners. Liability is joint and several and unlimited towards third parties.	Company's name registration: EUR 7-14; Constitution Act by a public notary: EUR 500; Payment of a fee to local authorities: 1% of capital; Inscription in the Trade Register: EUR 164; Editing Statutes: EUR 90; Obtaining a municipal license to open commercial buildings: EUR 6,350.
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.	Company's name registration: EUR 7-14; Constitution Act by a public notary: EUR 500; Payment of a fee to local authorities: 1% of capital; Inscription in the Trade Register: EUR 164; Editing Statutes: EUR 90; Obtaining a municipal license to open commercial buildings: EUR 6,350.

Business setup procedures: Statutes must be drawn up by a notarized deed. The relevant register is that of the province where the headquarters of the company is situated or the place where the branch is located. Foreign investors must obtain a negative certificate from the Central Trade Register to ensure that the company name is not already in use. A tax licence (CIF) is required on formation. Registration with Social Security and opening a bank account are compulsory. For further information, visit the website Crear-empresas.com/.
The competent organization: National Trade Register

Working conditions

Legal weekly duration: 40 hours
Retirement age: 65 or 64 years.
Working contracts: The labor contract can be written or oral; for an indefinite period or for a defined duration, training contract, relief contract, termporary contract for work or defined assignment.
For further information, please visit the website of INEM or refer the labor guide from the Department of Labor and Social Welfare.

Cost of labor

Minimum wage: 20 EUR/day, 600 EUR/month or 8,400 EUR/year
Average wage: Average monthly gross earnings in Spain was 1,630 EUR in 2007.
Social contributions: Social security contributions paid by employers: 29.9%
Social security contributions paid by employees: 6.35%

Social partners

Social dialogue and involvement of social partners: There are about forty trade unions (general or regional) and a large number of sector-based / regional unions (gremios).
Unions: National Labor Union
Association of Trade Unions
Workers' Commission
Unionization rate: Union membership is low: around 14%.
Labor regulation bodies: Department of Labor and Social welfare

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