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Annual accounts

What are the rules for private Spanish companies to file accounts?

The presentation of accounts is mandatory for the administrators of any company that has a commercial exploitation, regardless of its governing body. The consequences of not presenting the accounts range from the bad image of the company, due to the lack of transparency towards the company, to economic sanctions against the administrators of said company. In these cases, the penalties for the administrators may be corporate, even against their own assets, or force the company to file a bankruptcy.

Account deposit obligation

In addition to the obligation to formulate accounts (articles 253 and ss LSC), the administration body must deposit them in the commercial register (article 368 RRM) within one month of its approval by the General Meeting. More specifically, the administrators must present certification of the agreements of the board of approval of said accounts, duly signed and of application of the result as well as, where appropriate, of the consolidated accounts.

The Registrar will qualify under his responsibility in fifteen days from the date of the presentation seat if the documents presented are required by law, if they are duly approved by the general meeting and if the mandatory signatures are recorded. If he appreciates a defect, he will issue a negative grade and cannot carry out the registration. For this reason, when there is no approval of the same by the board, the administrative body has to notify the commercial register of the certification of the minutes in which the accounts are not approved expressing what has been the cause of non-approval. In this case, the closing of the registration form will be avoided.

Which are the companies required to deposit the annual accounts?

General consequences of not depositing the annual accounts in the Mercantile Registry.

The lack of deposit of the Annual Accounts has at least three serious damages to your company:

Penalty system (Article 283 LSC)

The first month of each year the Commercial Registrars have to send to the DGRN a list of the companies that had not fulfilled the deposit obligation the previous year. In the second month, the list will be transferred to the Accounting and Audit Institute for the initiation of the disciplinary proceedings in accordance with the provisions of the Law on the Legal Regime of Public Administrations and the Common Administrative Procedure.

Amount: from € 200 to € 60,000 for each year of delay.

Prescription at three years.

For its part, the Registry will not impose a sanction if the presentation of the accounts is made before one year has elapsed since the end of the fiscal year (until December 31). However, if more than one year has elapsed, the registration sheet will be provisionally closed.

Likewise, if the documents are presented before the beginning of the disciplinary proceedings, the penalty will be imposed to a minimum extent and reduced by fifty percent.

However, the most serious consequence is undoubtedly the possibility of derivation of personal liability of the partners, against the creditors of the company.

In conclusion

The lack of deposit of the Annual Accounts has at least three serious damages to your company:

By not presenting the accounts, the administrator does not act with the diligence that is required.

Contact

Please do not hesitate to contact us by our general email info@spainrisk.com if you have any question about our services. You will receive a personalised response to your query and an estimate without any commitment.

For more concrete information, to request price quotes or to make an order you can to take contact with each specific department:

SpainRisk

University Expert in Security Policies (UNED 2015)
Degree in Philology (Central University of Barcelona 1992)

Sant Ramon, 15
E-08440-CARDEDEU
BARCELONA-SPAIN

Properties

What is the Land Registry for?

As indicated on the same property registration web page, the Property Registry is a State institution, a public service under the Ministry of Justice that responds to the need for security in the real estate market.

Benefits of registering in the Land Registry and damages for not doing so

In Spanish law, registration in the Land Registry is not mandatory. It is voluntary, but convenient, for the many benefits that arise from registration and for the damages that non-registration may entail.

Thanks to the registration in the Registry, we are officially recognized as owners. We can dispose of our right, selling or mortgaging, and anyone who has an interest in buying a house or constituting a right over it, may have at its disposal all the necessary information to be able to decide on equal terms and without surprises. In addition, by registering we have the assurance that no one can deprive us of our right or dispose of it fraudulently.

At the same time, the damages of not registering are very important. If we do not register our right, we let that in the Registry appear a owner who is no longer. This entails almost two dangers:

Find people

Many foreign debtors flee to Spain and here they buy property where they live. Consult the registry can, if so, give us a clue or a certainty of the debtor's current address, and dispose of assets to act against these goods.

Contact

Please do not hesitate to contact us by our general email info@spainrisk.com if you have any question about our services. You will receive a personalised response to your query and an estimate without any commitment.

For more concrete information, to request price quotes or to make an order you can to take contact with each specific department:

SpainRisk

University Expert in Security Policies (UNED 2015)
Degree in Philology (Central University of Barcelona 1992)

Sant Ramon, 15
E-08440-CARDEDEU
BARCELONA-SPAIN

SpainRisk LParera 77302440S

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