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A European Company (S.E.) offers companies that operate in several EU Member States, the option of being established as a single company for the purposes of EU law, and of being able to operate in the EU under a unified management and reporting system. The S.E. makes it possible for companies to reduce their overall administrative costs with a legal structure that is compliant with EU Regulations.

The subscribed capital may not be less than €120,000, and the S.E. can be formed by means of a merger; forming an S.E. holding company; forming an S.E. subsidiary, or converting an existing S.A. It must be registered at the Mercantile Registry. The managing bodies are: (i) the Shareholders’ Meeting; and (ii) either a managing body (one-tier system) or a managing body and an oversight body (two-tier system). The liability of the shareholders is limited, in principle, to the capital subscribed.

Legal formalities to form an S.E.:

similar to a SA

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