When starting a business in Spain, first you need to sign an incorporation deed in the Spanish notary. Incorporation deed will incorporate the articles of administration of the company. The articles of administration must be in accordance with Spanish law. The articles of administration contain information on, among others, domicile, the business activities of the company, the administration of the company and dissolution clauses.
In addition to incorporation deed, we strongly recommend to you sign also a shareholders’ agreement between the shareholders of the company in order to regulate the obligations of each of the shareholders towards the company.
It is very common to trust what you initially decided together with your partners. However, it is a recommendable to have a document, that clearly states the obligations and rights of the shareholders of the company.
Shareholders’ agreement is a popular, worldwide used tool to regulate the obligations and rights of the shareholders of a company. The common matters to be agreed on shareholders’ agreement are, among others, non-competition and redemption clauses, first refusal rights and dispute resolution.
Please take a look of out video, in which Lourdes Santisteban, partner of AvaLaw, explains the importance of the shareholders’ agreement: