Lawyers in Spain informing on new Spanish law: entrepreneurs with limited liability

The multilingual Spanish lawyers and tax advisers of our law firm in Marbella have the

pleasure to inform you on the fact that “entrepreneurs” as natural persons can enjoy a

limited liability as well, as set forth in the Spanish law 14/2013, of 27th September, on

support for entrepreneurs and their internationalization.

Pursuant to article 7 of aforesaid Spanish Law, the limited liability is defined in relation

to the debts incurred in the course of their business or professional activity for

entrepreneurs who opt for the “limited liability entrepreneurs” regime. This law

essentially sets out that the liability for debts will protect the personal assets of the

entrepreneur-debtor provided that the value thereof does not exceed 300.000Euro. In

case the property is situated in a town with more than 1 million inhabitants, the value of

the property may not exceed 450.000 Euro.

When the Spanish entrepreneurs gets registered at the Companies Register of his

domicile, he must indicate the property, on his own name or of common ownership that

he wishes to protect.

Obviously, debtors who act in a fraudulent way or with severe negligence in the

fulfilment of their obligations will not benefit from this limited liability regime. This

must have been proven in a final court ruling or the debtor must have received a verdict

against him in a bankruptcy procedure.

How to obtain the “limited liability entrepreneurs” regime?

You obtain the status of limited liability entrepreneur by filling in the corresponding

sheet at the Companies Register of your domicile. Apart from indicating the ordinary

circumstances, the registration must contain a description of the assets that are not

subject.

What kind of publicity obligations does an entrepreneur with limited liability

have?

The Spanish entrepreneur that is registered, must record on every documentation, the

registration information and his/her status of entrepreneur with limited liability or

adding the letter ERL after his/her name, last name and fiscal identification number.

The entrepreneur with limited liability must deposit the annual accounts at the

Companies Register.

This limitation enters into force as from the moment of the registration.

The Association of Registrars, under the supervisions of the Ministry of Justice, will

have a free Internet portal so that users may have free access to the information of

entrepreneurs with limited liability.

Do not hesitate to contact our firm for any legal, tax and accountancy advise now!.

More information on accountancy subject can be found here!

www.arcos-lamersasociados.com

Marbella, May 2014