A Spanish SL is actually a limited liability company or sociedad limitada. It is the most popular type of business in Spain, especially for foreign investors. Flexibility is the main characteristic of this business structure, since the shareholders are free to make their own rules inside the company. A Spanish SL usually is used for small and medium sized companies.
More details on the Spanish SL (limited liability company) are available in the presentation below:
At least 3,000 EUR have to be provided in order for the limited liability company to be established in Spain. Contributions can be made in cash, credit rights, real property or any other types of assets. No expert’s evaluation is required. The capital is divided into shares, which are not free for transfer.
The minimum number of shareholders needed for the incorporation of a limited liability company in Spain is one. There is no limit for the maximum number of shareholders. Members of the Spanish SL are liable only to the extent of their contribution.
A board of directors is mandatory for a SL in Spain. This body must have between three and twelve members. One director can be elected for an unlimited period by the general meeting of the shareholders. Directors may not be shareholders and they are elected by the general meeting, which is the highest managing body in rank for a Spanish company.
It is not necessary to keep accounting documentation according to the Spanish law, but all records must be available on request, if the Spanish authorities want to evaluate them. Financial statements must be completed annually. All changes regarding the organization and the incorporation documents must be at first approved by the general meeting of the shareholders.
The limited liability company in Spain must have a name that mentions its structure, therefore the words “sociedad limitada” are mandatory for the company registration in Spain. All companies must be registered with the Trade Register in Spain.