Spain Company Formation

Spain Company Formation
  • Spain is one of the most open European countries for business and investment.
  • The government has simplified business procedures, reduced licensing requirements and increased incentives to attract foreign investment.
  • Registering a company in Spain opens up access to European Union, North Africa, the Middle East and Latin America.
  • Time of Italian company formation takes 5-7 DAYS.

Popular company type:

  • Limited Liability Company (Sociedad Limitada/SL)

Tax rate in Spain

Corporation Tax: 25%

Income Tax  (for non-residents): 24%

VAT: 21%

About Spain

Capital: Madrid

Region: located on the Iberian Peninsula (which it shares with Portugal and Andorra) situated in the southwest corner of Europe

Language: Spanish

Currency: Euro (EUR)

Time Zone: GMT+1

Dial Code: +34

Abbreviations: ES

What we can do for your Company in Spain

  • We do all paperwork on forming the company in Spain
  • Formation is completely remote
  • Can act as Secretary or Treasury
  • Provide nominee Directors/Shareholders
  • Assist with opening a bank account
  • Registration for Taxes, VAT & EORI
  • Develop a website for your business
  • Create a logo of your brand 
  • Provide with full company administration services
  • Arrange a mailing address for your business
  • Arrange a virtual office for your company
  • Telephone answering service
  • Book keeping, audit & reporting
  • Preparing and submitting VAT return
  • Dealing with local authority
  • Trademark registration

Spain Company Formation. Spain Limited Limited Company registration

Main Characteristics and the basic rules of Company registration in Spain.

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.

This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.

BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.

Our team of consultants are here to take you through the process.