Joint Ventures in Spain
Basically there are 3 types of joint ventures in Spain:
The first is to invest as minority shareholders in an existing company or to set up a jointly controlled company, limited or otherwise.
A second option open to foreign companies is to form temporary business associations (Uniones Temporales de Empresas -UTE), to undertake specific projects for a limited time. This type of association does not have a separate legal personality. In this way companies maintain their legal status while allowing common operations under a pre-established set of rules.
Thirdly, companies can form an Economic Interest Group (Agrupacion de Interes Economico -AIE). It is similar in concept to a partnership because its participants have joint and separate liability for their debts. To form an AIE, the participants must execute a public deed, incorporating bylaws, and record it at the commercial register. The internal operation of an AIE is similar to that of a corporation and one can transform an AIE at any time into any other type of commercial entity.
There is also a European version of the AIE, the European Economic Interest Group (Agrupación Europea de Interés Económico -AEIE). This is a cross-border version of the Spanish AIE, introduced by E.U. Regulation. In most respects, it is similar in constitution and operation to an AIE. These three models of joint ventures are tax transparent, and they apportion their income among members. In all of these cases, the members are responsible for losses and profits.