Commercial Code in Spain

A presentation brought to you by LawyersSpain.eu

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Commercial Code in Spain – Definition >>

The Commercial Code in Spain represents a collection of laws and regulations used to conduct all commercial activities in this country.

Investors who want to open a company in Spain have to comply with the provisions of the Code in terms of company registration, taxation and many others.

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>>Commercial Code in Spain – Definition

The Commercial Code in Spain also provides the rights and obligations of the entrepreneurs carrying business activities in this country.

In the situation in which a certain activity is not specifically regulated by the Commercial Code, the investors can find regulations in the Civil Code.

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The Spanish Trade Register >>

The Spanish Business Registry has the purpose of providing registration for the main types of legal entities that can be incorporated in Spain: - sole traders;- corporations;- insurance companies;- collective investment institutions. Our team of lawyers in Spain can provide legal assistance for the registration procedure.

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The Obligations of a Merchant in Spain

The merchants performing business activities in Spain have to comply with a set of rules, prescribed in the Commercial Code, as well with the ones available under the Civil Code.

A merchant should keep the following documents:

- a journal;- ledger or accounts;- book balances.

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The Spanish Trade Register

The Registry operates under the Ministry of Justice. Businessmen operating as sole-traders are not required to register at the Spanish Trade Register.

The information registered by legal entities at the Spanish Trade Register is public. Main public information refers to the legal entity of the company or its capital.

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Financial Statements under the Commercial Code A company should also use a balance sheet, which contains information on the following: - company’s assets;- company’s liabilities;- net assets.

It also must have a profit and loss account, containing details on the revenues and expenses.

Our team of attorneys in Spain can offer further details on the company’s documents.

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Conclusion of Commercial Agreements

Concluding commercial agreements in Spain are to be completed only in writing.

Further on, the business contract can be accepted or denied by any of the parties, if the terms are not mutually profitable.

The local legislation allows verbal agreements, but only for business proposals.

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Contracts with a foreign entity

Business relationships that are established between Spanish entities and foreign companies have to be concluded in writing, following various regulations established between the two states.

In this sense, we can mention the treaties for the avoidance of double taxation.

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The Obligations of the Sellers and Buyers

A contract between two parties must contain mandatory provisions, such as the object of the contract, the deadline to meet the terms, the value of the contract and the rights and obligations of those involved.

A seller has the obligation to deliver the goods or services included in the contract at the specified deadline. Our law firm in Spain can offer legal advice on this matter.

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Provisions Referring to the Securities Market

The investment market is also regulated following the provisions of the Commercial Code.

The law provides regulations for the following: - stock exchanges;- stock exchanges operations;- the actions of stock brokers;- stock market agents.

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