Why are companies leaving Catalonia? The importance of the registered office

Large companies leaving Catalonia have made the headlines and these moves are undoubtedly influencing the confusing “procés” towards independence led by the Catalan Government. There is much discussion about the possibility of return and the consequences on Catalonia´s economy (I recommend this article). It is therefore essential to understand what the registered office is and its importance. Some say it is a change of postal address. And it is: the registered office is the official address of a company : it appears in its Bylaws, its registration, and its documents and invoices. It allows any partner or third party to know where to contact the company. But it is much more than that. The registered office also determines the nationality of the company (Article 8 of the Spanish Company Law or LSC). This is the essential reason for the recent changes: if Catalonia becomes in fact independent, the companies with their registered office in Catalonia would change nationality. As under the EU Treaties independence this would imply that Catalonia would no longer be part of the EU, companies would automatically be excluded from the single European market. They would not benefit from the right to freedom of establishment enshrined in […] https://hayderecho.com
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