Spain: Operating a business

Sociedad de Responsabilidad Limitada or S.R.L. (limited liability company)

Number of partners: Minimum 1 partner.
Capital (max/min): 3,000 EUR minimum fully subscribed and paid upfront.
Shareholders and liability: Responsibility limited to the contribution amount.

Sociedad Anonima or S.A. (limited company)

Number of partners: Minimum 1 partner.
Capital (max/min): 60,000 EUR minimum, fully paid up minimum up to 25% of the total constituted amount.
Shareholders and liability: Responsibility limited to the contribution amount.

Sociedad Colectiva (company in a group's name)

Number of partners: Minimum 2 partners.
Capital (max/min): No minimum capital.
Shareholders and liability: Liability is joint and several and unlimited towards third parties.

Sociedad comenditaria (Limited partnership company)

Number of partners: Minimum 2 partners. There are 2 types of partners, general partners and limited liability partners.
Capital (max/min): No minimum capital.
Shareholders and liability: Unlimited liability for general partners; liability limited to the contribution amount for the limited liability partners.

Business Setup Procedures

The Competent Organisation

National Trade Register

For Further Information

Consult Doing Business Website, to know about procedures to start a Business in Spain.
Central Trade Register
Crear-empresas

Financial Information Directories

Dun & Bradstreet - Worldwide directory with financial information on businesses

Info Empresa - Directory of Spanish companies with financial information

Informa - Spanish business directory

Kompass Spain - Business directory for Spain

Registradores de España - Register of Spanish companies

Recovery Procedures

Principle

Spain has a fair and transparent bankruptcy regime. Bankruptcy proceedings are governed by the Bankruptcy Law of 2003 that entered into force on September 1, 2004. It applies to individuals and companies. The main aim of this law is to ensure the collection of debts by creditors, to promote consensus between the parties and, if possible, to enable the survival and continuity of the company. Since 2002, the Spanish Government has simplified bankruptcy:
- Instead of suspension of payments, the company is « put up for sale by auction » under the control of an official receiver. It can then either suspend or not its business,
- if no solution of recovery or renegotiation of the debt is found the company is declared bankrupt and its assets liquidated to pay the creditors partly.

Minimum Debt-to-Capital Ratio Triggering Liquidation

All the unpaid debts (salaries, social security, suppliers, etc.) outstanding for more than 6 months can lead to the initiation of the process for liquidation of the company.

Bankruptcy Laws

"Ley Concursal" 22/2003 of July 9, 2003.

For Further Statistics

Statistics on the labor market from INE

For Further Information About the Labour Market

ILO, International Labor Organization
INEM, Publications of the employment institute

Opening Hours

 

• Legal Weekly Duration

40 hours

• Maximum Duration

Must not exceed 9 hours per day except if agreed by joint convention or between the company and the union representatives. Additional hours should not exceed 80 hours per year. 40 hours per week average over the year

• Night Hours

Between 10 pm and 6 am.

Working Rest Day

1.5 uninterrupted days per week (Sunday and Saturday afternoon or Monday morning).

Paid Annual Vacation

30 working days per year of service

Retirement Age

65 or 64 years. In January 2011, a pension reform was introduced, increasing the legal retirement age from 65 to 67 over a 15-year period beginning in 2013.

Child Labour and Minimum Age For Employment

End of compulsory schooling or 15 years

Informal Labour Market

3% according to the Euro barometer
15% according to some estimations

Pay

Minimum Wage

In 2022, the interprofessional minimum wage in Spain was 1,000 euros per month, or 33.3 euros per day (SEPE).

Average Wage

In 2020, the average annual salary was USD 37,922 (OECD).

Other Forms of Pay

• Pay For Overtime

Depends on the collective convention of the sector.

• Pay For Rest Days Worked

Depends on the collective convention of the sector.

• Pay For Night Hours

Depends on the collective convention of the sector.

• Pay For Overtime at Night

Working overtime at night is not permitted.

Social Security Costs

The Areas Covered

Old age, disability and survivors, sickess and maternity, work injury, unemployment and family benefits. Refer to the ISSA site for more details. 

Contributions

Contributions Paid By the Employer: As of January 2022, the employer contribution is 29.9% for general contingencies, plus a variable rate for occupational accidents (e.g. 1.5% for office work).
Contributions Paid By the Employee: The general contribution rates as of January 2022 are 6.35% for employees. 

Competent Organization

Ministry of Social Security and Employment

Recruitment

Method of Recruitment

The application package sent must contain a CV and references; a cover letter (carta de presentación) is not always asked. Internet is used more and more; however in some regions, the companies prefer the candidate to directly introduce himself on the spot and submit his application. The recruitment method is face-to-face interview.

Recruitment Agencies

The INEM is the official employment agency.
Recruitment agencies (Michael Page),  and temping agencies (Kelly Services),  are present and help people find jobs. The regions also have a help service to help find a job.

Recruitment Websites

Infoempleo.com
Monster

The Contract

Dispute Settlement

Social Partners

Employer Associations

CEOE - Spanish Association of Entreprises Associations
CEOE - Spanish Confederation of Organizations of Enterprises
CEPYME - Spanish Confederation of Small to Medium Scale Enterprise
CEPYME Autonómicas - Autonomous Spanish Associations or Confederations
IPYME - Information Center for SMEs of the Ministry of Industry, Tourism and Commerce

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). Collective bargaining is widespread in both the private and public sectors. The Constitution guarantees the right to strike, and this right has been interpreted to include the right to call general strikes to protest government policy.

Unionisation Rate

Union membership is low: around 10%. 50% of the working population is covered by collective bargaining agreements.

Labour Unions

National Labor Union
Association of Trade Unions
Workers' Commission

Regulation Bodies

Department of Labor and Social welfare