Contractual Joint Ventures
Currently, Joint Ventures with Spanish companies are structured through the creation of Limited Liability Companies with capital held by different partners that not only make contributions to capital, but may also provide accessory services. Said services are important because they require partners to fulfil the duties set forth in the company’s Articles of Association, at the risk of automatic exclusion (in certain cases).
The legal concept of the Italian “network contract” has not yet been introduced in Spain at a legislative level and least of all under the form of formal or contributory benefits, except for what are known in Spain as UTEs (Unión Temporal de Empresas) or Temporary Business Associations.
There are in Spain few recognized models for Partnership agreements
The most common figure is the Unión Temporal de Empresas (UTE)
specifically targeted to company networks for Public contracts.
The kind of networks are temporary and can be incorporated on a purely contractual basis, to jointly offer an increased solvency and competitiveness in important projects.
The Spanish regulation provides only a framework scheme mainly for tax purposes, identifying the liability of the partners according to their specific participation and authorizing the Partnership to become a Tax payer and a contractual subject in order to facilitate its relationship with third parties.
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