The Spanish legal system provides certain protections for creditors of companies that have in fact ended their commercial trading. These companies have been abandoned by their partners and managers, rendering them inactive, yet they have not dissolved and liquidated pursuant to the established processes established by law for that effect. In most cases, they are insolvent companies unwilling to deal with their corporate debts and obligations. Their liabilities are limited to eliminating commercial trading, abandoning the principal place of business, failing to disclose annual accounts with the Commercial Registry, ceasing payment of taxes and leaving the company inactive and non- compliant with all other corporate obligations required by law.
