Spain Company Formation

The main legal steps to start a business in Spain are as follows:

You should familiarize yourself with the requirements of the law and the legal aspects of the following corporate forms of companies. Before registering a company, it is necessary to choose the appropriate organizational and legal form of doing business.
Choosing the legal form in Spain for starting a business:

1. Limited Liability Company – Sociedad de Responsabilidad Limitada (S.L.). This is a type of commercial company regulated by the Capital Companies Act. This is the best choice for starting a small business.

• The minimum authorized capital of the company is 3,000 euros and must be paid in full at the time of incorporation. No upper limit of authorized capital
• The partners’ liability is limited to the contributed assets.
• SL is required to pay corporate income tax on total profits and a VAT return is required.
• A company can be opened without involving a resident of the country as a co-founder, director or guarantor.
• Before starting the registration procedure, it is necessary to obtain a temporary tax number by paying a tax on the authorized capital, which is 1%.
• Prepare the required company articles of association required for incorporation, it is best to hire a professional to do this and then go to a notary public for his signature.
• After registering the company and receiving all the documents, it will be necessary to go through all the procedures in the tax authorities and the social insurance department.

The procedure for creating your own business in Spain can be considered quite simple. The main thing is to understand all the legal intricacies, and then you can open your own business.

2. Joint stock company in Spain – Sociedad Anónima (S.A.)

• Such an LLC can be opened even by one founder.
• The minimum share capital is EUR 60,000 and at least 25% of each share must be paid up at the time of registration.
• Joint stock companies have the right to issue bonds and other types of transferable securities.
• Shareholders’ liability is limited to the extent of the company’s property.
• Preparation of constituent documents of the company and their notarisation.

Applications for company registration must be submitted to the Central Commercial Register, the waiting time for completion of registration is about 2-6 weeks.

Every company registered in Spain must keep accounting records and submit both financial statements and VAT returns in a timely manner.

For complete information and advice, you can contact BRIS GROUP team.