Corporate structures in Spain
In Spain there are plurality of corporate structures. Depending on the type of professional activity that we want to develop it will be advisable to choose the correct type of company.
The most common corporate structure in Spain is the limited company (“S.L.”). Its legal regime is determined by its own applicable regulations and its existence is accredited in the Commercial Registry. This type of company could be equated to a Dutch limited liability company (B.V).
However, in Spain there are other types of entities with characteristics different from those of an S.L., such as the so-called agricultural transformation companies (“SAT”). This is a civil company attached to a series of limits and strict procedures with regards to its constitution, registration, management, and liquidation.
These are entities that, unlike limited companies, must be dedicated exclusively to agricultural activities, and their partners must therefore have the purpose of dedicating themselves to such activities. In addition, its creation must be registered in a specific Registry different from the one in which limited companies are registered.
Considering the constitution of a SAT may be a good choice when undertaking some type of activity whose purpose is to produce, transform and/or market agricultural products or to carry out improvements in rural areas. However, it is a specific type of legal entity with a series of peculiarities of which it is convenient to be aware.
If you are considering opting for a SAT as a legal entity in order to carry out the desired activity, it is important that you receive the appropriate legal advice in advance in order to know the legal and fiscal particularities of this type of entity to determine so if such a corporate structure suits you or if it is preferable to opt for another option.
From OTIS Advocaten we can advise you on all the issues that can arise within the framework of an agrarian transformation company or a limited company, whether it is the process of creation or dissolution and liquidation of the entity or if it is about managing the resolution of existing conflicts between its members. If you are considering setting up one of the aforementioned legal entities, or if you are facing a conflict situation between its members, do not hesitate to contact us.