A foreign investor can invest in Spain by:

• Open a branch or representative office.
• Form a Spanish company: traditionally, the most-used corporate form has been the corporation (S.A.); however, in recent years the formation of limited liability companies (S.L.s) has also become commonplace.
• Associate with other businesses already established in Spain: joint ventures are a common way of setting up business in Spain, since they enable their members to share risks and pool resources and experience. Spanish law provides for different types of joint venture.

However, creating a new entity or associating with pre-existing entities is not the only way to invest in Spain. It is possible to gain a foothold in the Spanish market without having to physically set up a center of operations in Spain by:

• Making distribution agreements.
• Operating through an agent.
• Operating through a commission agent.
• Establishing a franchise.

For further information, visit the extended version of our online Guide to Business:

Establishing a business in Spain

Appendix I. Company and commercial law

Appendix II. The Spanish financial system

Appendix III. Accounting and audit issues

Prepared by Garrigues

Last updated: 27|06|2011