Choosing the Best Management Structure for Your Subsidiary in Spain: Everything You Need to Know
There are four ways to manage a company in Spain:
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Sole administrator: This individual is responsible for making all the decisions and representing the company. It is highly recommended to have multiple PoAs to avoid any potential roadblocks in the event of the administrator's resignation, incapacity, or death.
Two or more joint administrators (solidary): Under this structure, each administrator has broad powers of representation and decision-making, which can be exercised individually.
Two or more joint administrators with joint signing authority: This structure requires all administrators to sign off on decisions and representation of the company.
Board of Directors (with 3-12 members): Acting collegially as a body, this structure can appoint a CEO from within, who would act as well as a Sole Administrator in many matters.
Given a company's international nature operating in Spain, it would be advisable to have either a sole administrator or multiple administrators (joint or solidary) in place. Additionally, it is important to establish an appropriate power structure so that your staff in Spain can carry out necessary actions that require a prompt response without depending on travel or granting apostilled PoAs. If you prefer, you can also grant to your legal firm power of attorney to handle some of these tasks on your behalf.
Ignacio López-Hermoso
Corporate M&A Lawyer
➡️For more info you can contact us on 0034 91 415 74 62 or send us an email to info@lopezhermoso-abogados.com