A joint venture is a type of legal entity which is registered by two or more parties that agree to enter in a joint venture contract for a determined period of time, with the purpose of completing a specific investment project. The participants in a joint venture are both liable for the project’s outcomes and the costs and risks associated with it. Those who want to open a company in Spain for a determined investment task are advised to register a joint venture, as it represents the most suitable legal entity for such purposes. Our team of company formation representatives in Spain can offer more details on this matter.
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Regulations for joint ventures in Spain
Joint ventures in Spain can be registered by both local and foreign investors. This type of business form can be incorporated under one of the legal entities available in Spain, but most of the investors prefer to register it as a public limited liability company or as a private limited liability company. It is important to mention that in the last years the popularity of the joint ventures registered as private limited liability companies increased, due to the fact that the capital requirements are much lower than in the case of the public limited liability company. Our team of company formation agents in Spain can assist in choosing a suitable legal entity.
Those interested in company formation in Spain must know that joint ventures (JV) registered as corporate entities will be regulated by the Spanish Corporate Law, as well as by the Capital Companies Act.
The incorporation of a joint venture in Spain will require a joint venture agreement, which can be drafted in any language chosen by the investors. In the case of the corporate JV, it is also necessary to register the statutory documents – the public deed of incorporation and the articles of association, at the Commercial Registry.
Legal forms of a joint venture in Spain
Foreign investors, who are interested in company registration in Spain as a joint venture, can register it as one of the following business forms:
- temporary business unions;
- economic interest groups;
- silent partnership.
Businessmen are invited to contact our team of company formation consultants in Spain for advice on the incorporation of a joint venture.