Company Registration in Spain- An Overview

Aspect Details
Timeline for Online Company Registration in Spain The timeline for tax-efficient business setup in Spain is 2 to 4 weeks
Fees for Company Incorporation in Spain The fees for company incorporation in Spain start from USD 4999.
Benefits of Company Formation in Spain

The list of Benefits of Company Formation in Spain is as follows:

  • Tourism Market
  • Government Incentives
  • Tax Advantages for Companies and Start-Ups
  • Double Taxation Agreements
  • Strategic Location
  • Tax-Efficient Business Setup in Spain
Types of Structures for Business Setup in Spain

The Types of structures for Business setup in Spain are as follows-

  • Sole Trader or Sole Proprietor (Autónomo)
  • Limited Liability Company (Sociedad Limitada - SL)
  • Newly Created Limited Liability Company (Sociedad Limitada Nueva Empresa - SLNE)
  • Stock Corporation (Sociedad Anónima - SA)
  • Jointly Owned Company (Comunidad de Bienes - CB)
  • Partnership (Sociedad Civil - SC)
  • Workers-Owned Company (Sociedad Limitada Laboral - SLL)
  • Cooperative (Sociedad Cooperativa - S.Coop)
  • General Partnership (Sociedad Colectiva)
  • Limited Partnership (Sociedad Comanditaria)
  • Branch Office (Sucursal)
  • Subsidiary
  • Representative Office (Oficina de Representación)
Corporate Tax rate The normal corporate tax rate in Spain is 25%, and for newly formed corporations, the tax rate is 15%.
Minimum Share Capital The minimum share capital for a Limited Liability Company is EUR 3,000 (three thousand)
Minimum number of Shareholder One
Documents Required for Company Registration in Spain

The list of documents required for company registration in Spain is as follows:

  • Business Plan
  • Valid Passport
  • Proof of Registered office address
  • Incorporation Deed
  • Bylaws of the company
  • Certified Copy of NIE (Numero de identificacion de Extranjeros ) for all foreign shareholders and directors.
  • Proof of share capital deposit from the bank
  • Articles of Association (Escritura Publica)
  • Tax Identification Number or CIF
  • Social Security registration certificate (if hiring employees)
  • Utility Bills that are not more than three months old
  • Information about the shareholders and directors
Procedure for Company Incorporation in Spain

Step-by-Step Procedure for Company Incorporation in Spain-

Step 1- Choose your Corporate Business Structure

Step 2- Get a Foreigner's Identification Number (NIE)

Step 3- Register the Company Name with the Central Commercial Registry (Registro Mercantil Central)

Step 4- Open a Business Bank Account

Step 5- Draft & Notarize the Articles of Association ((Escritura Pública)

Step 6- Register with the Spanish Tax Authority (Agencia Tributaria)

Step 7- Register with the Commercial Registry (Registro Mercantil)

Register with the Spanish Social Security System

How can we help you with Company Formation in Spain?

At Enterslice, we make Company Incorporation in Spain effortless with:

  • Expert Guidance to suit your business goals
  • Swift Process for immediate business setup in Spain
  • End-to-End Compliance Support ensuring all legalities are covered
  • Tax Filing Support
  • Hassle-Free Solutions designed to save you time and effort
  • Spain corporate formation services

Start a Business in Spain and Enjoy 100% Foreign Ownership

Let Enterslice experts help you start a business in Spain effortlessly and conveniently

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Understanding Company Registration in Spain

Do you have a dream to start a business in Spain? If yes, you are at the right place. At Enterslice, we assist business enthusiasts like you with blissful and timely company registration in Spain.

Spain is a favourable business spot for global entrepreneurs. Its vibrant culture, strategic location in Europe, supportive business policies, and thriving startup hubs such as Madrid and Barcelona make it a paradise for business owners.

Well, Spain, with its thriving economy, excellent infrastructure, and access to the European Union’s single market, is one of the most preferred destinations for new business ventures and entrepreneurs. Let Enterslice simplify your entrepreneurial journey and help you with company formation in Spain.

No Local Director

100% Foreign Ownership

Minimum One Shareholder

Double Taxation Agreements

25% Tax Rate

Minimum Share Capital Euro 3000

700 Million Potential Customers (EU and North Africa)

Personal Assets Remain Safe

Ideal Infrastructure

Types of Structures for Business Setup in Spain

The list of structures for business setup in Spain is as follows:

Sole Trader

Sole Trader or Sole Proprietor (Autónomo)

Ideal for individuals who want to operate independently, this structure is popular among freelancers, consultants, and small business owners. It offers a simple setup but comes with personal liability for business debts.

Limited Liability Company

Limited Liability Company (Sociedad Limitada - SL)

The most preferred type of company registration in Spain for small and medium-sized enterprises (SMEs). Shareholders have limited liability, meaning their personal assets are protected from business debts.

SLNE

Newly Created Limited Liability Company (Sociedad Limitada Nueva Empresa - SLNE)

A specialized type of SL designed to speed up company formation for startups and small businesses. It encourages new business ventures by making the setup process more accessible.

Stock Corporation

Stock Corporation (Sociedad Anónima - SA)

Suitable for large businesses or companies planning to go public. If listed on a stock exchange, the company's shares can be publicly traded. It is managed by a board of directors.

Jointly Owned Company

Jointly Owned Company (Comunidad de Bienes - CB)

A simple business structure where two or more individuals co-own a business without forming a separate legal entity. All partners share unlimited liability for debts. No minimum capital requirement for this entity.

Partnership

Partnership (Sociedad Civil - SC)

A business structure based on partnership, where two or more individuals or entities operate together. Partners are personally liable for business debts. This structure is often preferred by small businesses.

Workers-Owned Company

Workers-Owned Company (Sociedad Limitada Laboral - SLL)

A type of limited liability company where the majority of capital is owned by workers. Liability is limited to the capital contributed. This structure encourages employee engagement and decision-making.

Cooperative

Cooperative (Sociedad Cooperativa - S.Coop)

A member-owned business entity operated for mutual benefit. Liability is usually limited to the capital contributed. It is popular in sectors such as agriculture, commerce, and fishing.

General Partnership

General Partnership (Sociedad Colectiva)

In this business structure for company formation in Spain, partners are personally and jointly liable for company debts and obligations. There is no requirement for a minimum capital.

Limited Partnership

Limited Partnership (Sociedad Comanditaria)

It consists of two types of partners:General partners manage the business and have unlimited liability, and on the other hand, Limited partners contribute capital and have limited liability.

Branch Office

Branch Office (Sucursal)

A fully controlled extension of the parent company, which remains fully responsible for its debts and obligations in Spain. It has no autonomy. It is one of the business structures for company formation in Spain.

Subsidiary

Subsidiary

Unlike a branch, a subsidiary is a separate legal entity, partially or wholly owned by a parent company. This structure limits liability for the parent company. It is subject to Spanish law and regulations.

Representative Office

Representative Office (Oficina de Representación))

A non-independent extension of a parent company, mainly used for market research and establishing business relationships, but it cannot conduct commercial activities. It’s a low-cost way to enter a new market.

Eligibility Criteria to Start a Business in Spain

The list of eligibility criteria to start a business in Spain is as follows:

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  • Nationality Both European Union (EU) and non-EU citizens are eligible to establish a company in Spain through non-EU may be required to obtain a residency visa and NIE.
  • Legal Age: The applicant must be at least eighteen years old.
  • Shareholders: A minimum of one shareholder is required (either an individual or legal entity)
  • Directors: At least one director is required of any nationality (must have NIE)
  • Minimum Capital Requirement The minimum capital requirement depends upon the type of company structure, such as EUR 3,000 for limited liability companies (S.L) and EUR 60,000 for public limited companies (S.A.)
  • Residency Requirement For company registration in Spain, there is no requirement for a residency permit for key management executives. Thus, foreigners can own a business in Spain.

Benefits of Company Formation in Spain

Some of the list of major benefits of company formation in Spain are as follows:

Tourism Market

Spain is a global leader in tourism, attracting millions of visitors each year. Madrid and Barcelona are the top travel destinations. Barcelona is famous for its stunning beaches, making it a favourite among tourists. Madrid, on the other hand, offers numerous attractions, including its iconic bullfighting arena.

Government Incentives

The Spanish government provides several incentives to support businesses. These include a 75% discount on social security contributions for companies that invest in employee education programs, as well as subsidies on bank loan interest rates.

100% Foreign Ownership

Spanish law permits 100% foreign ownership for global entrepreneurs seeking company incorporation in Spain. Besides this, capital movements are liberalized without any barrier.

Tax Advantages for Companies and Start-Ups

The Spanish government offers tax benefits for newly established businesses by reducing the corporate income tax rate to 15% instead of the standard 25%. This applies to the company's first profitable tax year and extends to the following year.

Double Taxation Agreements

Spain has also signed several Double Taxation Agreements (DTAs) with nations like America, the United Kingdom, India, etc. It means investors will not be taxed twice.

Strategic Location

Spain has a strategic location situated at the intersection of Europe, Africa and the Middle East. Businesses registered in Spain shall have access to a sizable and varied market.

Procedure for Company Incorporation in Spain

The step-by-step procedure for company incorporation in Spain is as follows:

Select the Right Business Structure

Firstly, the applicant for business setup in Spain must choose the best type of business structure available in Spain depending upon the size of the business, nature, and desired amount of personal liability.

Obtain a Foreigner's Identification Number (NIE)

Next, it is mandatory for foreign entrepreneurs who are looking to start a business in Spain to obtain an NIE number, also known as Numero de identificacion de Extranjeros or Foreigner Identification Number. This number is necessary to open a bank account in Spain.

Register the Company Name with the Central Commercial Registry (Registro Mercantil Central)

Here the applicant company must be ready with three names for the company and send the same for approval. One name will be approved and registered with the Central Commercial Registry (Registro Mercantil Central).

Open a Business Bank Account

After the approval of the company name, open a business bank account in Spain. You have to deposit the minimum share capital based on your preferred and chosen legal structure. You will get the deposit confirmation certificate from the bank.

Draft & Notarize the Articles of Association (Escritura Pública)

Our experts at Enterslice will help you draft the Articles of Association (Escritura Pública). It talks about the purpose and operational process of the company. Spanish Notary will officially certify the signed documents.

Register with the Spanish Tax Authority (Agencia Tributaria)

Proceed with the submission of the notarized documents to the Spanish Tax Authority. You will get a Tax Identification Number (CIF) for the company. This number is considered essential for tax purposes.

Register with the Commercial Registry (Registro Mercantil)

Register your company in Spain with the Commercial Registry (Registro Mercantil) by submitting all the required documents. Post official registration, your company will be listed in the public registry.

Register with the Spanish Social Security System

In this step, register your company with the Spanish Social Security System. It’s a key requirement to march ahead for hiring the employees. By doing this, you may contribute to the National Insurance System.

Reasons for Company Formation in Spain

The list of reasons for company formation in Spain is as follows:

Global Center for Business and Commerce

Spain has one of the most favourable geographical locations with excellent connectivity, extensive trade relationships and accessibility to the marketplaces of the EU, the Middle East & North Africa.

Robust Connections and Infrastructural Facilities

Spain has also emerged as a leader in the IT sector, particularly in terms of innovative IT and telecommunications systems. It is one of the most significant ICT markets across Europe.

Open to Foreign Direct Investments

The Spanish government has taken this initiative to encourage international enterprises and investments at all stages by introducing pro-free trade and pro investment stance by lowering corporate rules.

Bilateral Agreements

Spain has established 18 bilateral agreements to enhance investment security and development, along with approximately 21 agreements aimed at preventing double taxation.

Reduced Tax Burden

Notably, the Spanish Tax Agency offers a fully automated system, enabling most transactions and agreements to be completed online. Moreover, Spanish businesses enjoy a significantly lower overall tax burden compared to the EU-28 and the Eurozone.

Documents Required for Online Company Registration in Spain

The list of documents required for online company registration in Spain is as follows:

Business Plan

Valid Passport

Proof of Registered office address

Incorporation Deed

Bylaws of the company

Certified Copy of NIE for all foreign shareholders and directors

Proof of share capital deposit from the bank

Articles of Association (Escritura Publica)

Tax Identification Number or CIF

Social Security registration certificate (if hiring employees)

Utility Bills that are not more than three months old

Information about the shareholders and directors

Enterslice Makes Company Registration in Spain Simple for You

Business plans ready, healthy corpus of money maintained, still wondering how to start a business in Spain? Talk to our consultants at Enterslice for effortless company registration in Spain.

We ensure that we will visit the government office on your behalf, do all the tax filings, and help you manage your business, ensuring that you will have enough time to focus on scaling up your business. Consult our experienced professionals at Enterslice and enjoy an amazing entrepreneurial journey with online company registration in Spain.

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120+ Local Consultants in Spain

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99% Success Rate

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Understanding of Spanish Laws

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No Govt Office Visit Needed

Required Compliances for Company Registration in Spain

The list of required compliances for company registration in Spain is as follows:

  • Meeting of Shareholders :- Both private limited companies and joint stock companies must hold shareholders meetings within the span of six months of their financial year. At the time of the meeting, shareholders are allowed to vote on company-related matters.
  • Board Meetings :- Board meetings must be held at least once a quarter. However, members may call the meeting in some cases. On the other hand, the board meeting is not mandatory for branch offices.
  • Taxes :- Both corporate tax and VAT would be collected from the branch offices. On the other hand, joint stock companies and private limited companies will have to pay the respective taxes to the concerned authority. Additionally, the company must also file annual returns on time.
  • Maintenance of Annual Account :- Branch offices in Spain must maintain annual accounts with the commercial registry. However, these annual accounts must be kept separate from foreign entities.
  • Other Enrollment :- Branch offices must be registered with the Commercial Registry and relevant tax authorities. A tax identification number (NIF) will be issued to the branch office for filing tax returns. Both private limited companies and joint-stock companies are required to comply with the same regulations.

Talk to Enterslice consultants, and let us help you overcome the challenges with minimum effort.

Taxation System for Company Incorporation in Spain

The taxation system for company incorporation in Spain is as follows:

  • Tax for Standard corporate entities is 25%
  • Newly created companies (for the first two profitable fiscal years) are 15%
  • VAT normal rate is 21%
  • VAT reduced rate 10%
  • VAT super reduced rate 4%
  • Dividend tax rate 19% to the first EUR 6,000 of income
  • Dividend tax rate 21% for the following EUR 6,000 to EUR 50,000 of income
  • The dividend tax rate is 23% for the following EUR 50,000 to EUR 200,000
  • The dividend tax rate is a 26% tax rate on any remaining income.

Legal Framework for Company Registration in Spain

The legal framework for company registration in Spain is as follows:

  • The Spanish Companies Act
  • Central Commercial Registry
  • Spanish Institute of Employment
  • Mercantile Registry
  • Commercial Code
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Why Opt Enterslice for Company Registration in Spain?

Spain is a dream business spot for millions of business enthusiasts globally. Given below are the reasons why we are the first choice of entrepreneurs for company registration in Spain-

  • Empowered 500+ Passionpreneurs with Company Formation in Spain
  • 80% Faster Processing Time for Business Setup in Spain
  • 99% Positive Track Record in Online Company Registration in Spain
  • 24/7 Expert Support for Company Incorporation in Spain
  • Documentation Assistance for Company Formation in Spain
  • End-to-end Guidance for Online Company Registration in Spain
  • On-time Delivery of Spain Corporate Formation Services for Smooth Company Formation
  • Tax-efficient Business Setup in Spain from Anywhere, Anytime
  • Fast and Efficient Company Incorporation through Spain Corporate Formation Services
  • Support in Meeting the Legal Requirements for Companies in Spain

Frequently Asked Questions for Company Formation in Spain

Online company registration in Spain usually takes around 2 to 4 weeks. The timeline may get extended in case of regulatory delay. Thus, we recommend you consult experts at Enterslice before initiating your entrepreneurial journey.

Yes, both resident and non-resident entrepreneurs can start a company after company registration in Spain by selecting a business structure that suits their needs. The only requirement is to comply with Spanish laws and regulations.

The standard corporate tax rate in Spain is 25%. However, newly incorporated companies pay only 15% for the first two years.

Well, setting up a company in Spain is simple and straightforward. However, seeking professional assistance can help save time and speed up the process.

The list of legal requirements for companies in Spain are as follows:

  1. Obtain a Company Registration Certificate
  2. Obtain a NIE Number (Numero de identificacion de Extranjeros)
  3. Obtain a CIF (Tax ID Number)
  4. Bank Account Opening & Deposit the share capital
  5. Company Name Reservation

Yes, Indian entrepreneurs looking to start a business in Spain can register with the relevant authority and obtain an NIE (Foreigner Identification Number) for company incorporation.

The different types of business structures for company incorporation in Spain are as follows:

  • Sole Trader or Sole Proprietor (Autónomo)
  • Limited Liability Company (Sociedad Limitada - SL)
  • Newly Created Limited Liability Company (Sociedad Limitada Nueva Empresa - SLNE)
  • Stock Corporation (Sociedad Anónima - SA)
  • Jointly Owned Company (Comunidad de Bienes - CB)
  • Partnership (Sociedad Civil - SC)
  • Workers-Owned Company (Sociedad Limitada Laboral - SLL)
  • Cooperative (Sociedad Cooperativa - S.Coop)
  • General Partnership (Sociedad Colectiva)
  • Limited Partnership (Sociedad Comanditaria)
  • Branch Office (Sucursal)
  • Subsidiary
  • Representative Office (Oficina de Representación)

Some of the major advantages of online company registration in Spain are given below-

  • Stable and Booming Economy
  • International Trade Hub
  • Robust Infrastructure and Networks
  • Simpler procedures and less tax burden
  • Tourism Market
  • Government Incentives
  • Tax Advantages for Companies and Start-Ups
  • Double Taxation Agreements
  • Strategic Location

The list of documents required for starting a business in Spain are Valid Passport, Business Plan, Tax Identification Number, Utility Bills, Information about the Shareholders and Directors, and other documents.

The minimum share capital required for limited liability company in Spain is EUR 3,000.

The procedure to start a business in Spain is as follows:

  • Step 01: Select the Right Business Structure
  • Step 02: Obtain NIE Number
  • Step 03: Choose Company Name & Verify
  • Step 04: Open a Business Bank Account & Deposit the Share Capital
  • Step 05: Draft and Notarize the Articles of Association
  • Step 06: Register with the Spanish Tax Authority
  • Step 07: Register with the Commercial Registry
  • Step 08: Register with the Spanish Social Security System

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