Gorgeous, sunny Spain is the third largest investment market in the EU. As one of the top economies in the EU with a highly strategic location, the country enjoys easy access to the European, North African, and South American markets. Simply put, Spain is one of the largest recipients of foreign investments in the entire world.
We couldn’t talk about the mesmerizing country of Spain without mentioning the abundant opportunities available in the tourism sector. Only a few other places exist that can boast of glittering beaches so close to rolling hills, making Spain a go-to holiday destination for many. The real-estate development and rental is another big player in the Spanish economy. Additionally, the telecommunication sector is another one of the many potential investment avenues in Spain with a staggering 60 million mobile phone lines.
If you’re considering setting up your company in Spain and taking advantage of their favorable business environment, enjoy incentives, avail reduced tax rates, and tap into the large market, CompyCo can help you out.
Our familiarity with Spain’s legal and business structures and countless contacts in the necessary sectors make us the ideal partners for you. We’ll simplify the process of setting up your business by providing legal, financial, and HR-related advice to assist you along the way.
Forms Of Companies In Spain
- EI “Empresario Individual or Autónomo”—Sole Trader/Sole Proprietor
- SC “Sociedad Civil”—Partnership
- SL/SRL “Sociedad Limitada /Sociedad de Responsabilidad Limitada”—Limited Liability Company
- SA “Sociedad Anonima” —Public Limited Company
- SLNE “Sociedad Limitada Nueva Empresa”—New Enterprise Limited Company
- CB “Comunidad de Bienes”—Co-ownership
What is the difference between SL, SLNE, and SA companies in Spain?
In Spain, the three most common company forms are the SL, SLEN and SA. The main differences between the three are explained below.
SL is the Spanish alternative of an LLC and offers the advantage of having a low mandatory initial share investment of EUR 3,005.06. This type of company must have between 1–50 shareholders.
SLNE is a special, simplified, and increasing popular Spanish form of LLC with unique requirements pertaining to the company denomination which must include the founder’s name and registration number as well as the abbreviation ‘SLNE’. In the beginning stages, the maximum number of shareholders is 5. The minimum investment is the same as in the case of SL, but, unlike SL, SLNE has a maximum share value of EUR 120,202.
SA is the Spanish equivalent of a PLC requiring a large share deposit in the beginning. This company form is suitable for large-scale international investors.
Fundamentals Of A Limited Liability Company
Corporate Tax in Spain
VAT in Spain
Fundamentals of limited liability companies in Spain
|Limited liability company||sociedad limitada (S.L.)|
|Minimum Share capital||3000 EUR|
|Registered office required||Yes|
|Physical office required||No|
|Min. number of Shareholders||1|
|Min. number of Directors||1|
|Local directors required||No|
|Other requirements||All partners need to obtain tax number|
|Bank signatory must travel||Yes|
|Timescale for company formation||3 weeks|
|Timescale for bank account opening||7 day|
|Timescale for obtaining VAT number||14 days|
|Statutory audit requirements||No|
|Shelf companies available||No|
How can I set up my company in Spain?
Regardless of where you live, you can start a business in Spain in just a few, simple steps. CompyCo’s constant support and guidance will direct you toward the best choices for your business depending on your business activities, country of origin, and specific needs.
- Obtaining NIE for directors and shareholders
- Requesting the approval of a name – 3 optional names must be submitted to the Mercantile Register rmc.es
- Opening of the bank account and payment of the share capital – in some cases we can do this remotely
- Signing Deed of incorporation in front of Spanish notary and showing company statutes to the notary. We are doing that with PoA
- We will stamp the deed of incorporation at the tax office
- Submitting the documents to the Register. Waiting for company to be formed (2 weeks)
- After receiving confirmation of registration, we go to the tax office to ask for a permanent CIF number
- We register your company with Social Security
- We are activating your bank account by showing the company documents to the bank
The process of registering your company in Spain may seem daunting as a foreign investor, but you’ve got the right experts to guide you along the way. From obtaining an NIE number and opening a corporate bank account to registering of social security, arranging for the necessary legal assistance, and hiring the top talent, we can help you with it all!
We’ve developed close relationships with expert lawyers, finance professionals, HR service providers, and others who are familiar with the Spanish business landscape. This extensive network of experts will direct you toward the best practices to ensure business success in Spain.
CompyCo is dedicated to making the process of registering your Spanish company as hassle-free, cost-effective, and lucrative as possible. Partner with us for your expansion project and you can rest assured that we’ll protect your interests every step of the way.
Bank Account Opening
Once you’ve obtained the CIF and NIE codes for your business, opening a corporate bank account is the next logical step. This process is fairly straightforward once you’ve already done the above processes and CompyCo can simplify them even further!
Spain has a combination of local and foreign banks for you to choose from when you’re opening an account. In many cases, we suggest our clients opt for a bank where they already have an account in another country. If, however, this isn’t possible, then we’ll direct you to banks where you’re most likely to be approved for a new corporate account.
Since CompyCo’s team has valuable contacts in many of Spain’s financial institutions, you have a larger pool of banks to choose from. Our experienced banking service providers manage the paperwork, meetings, and requirements the bank will need to set up your account. Our priority is completing as much of the process as possible without the need for you to travel. However, in some circumstances, you might be required to travel to Spain to sign some documents or attend a meeting/interview.
For more information about opening a bank account, visit this page.
Accounting & Taxation
The accounting and taxation-related requirements to bear in mind are:
- To start trading in Spain, you must have the relevant accounting books and get them stamped at your nearest Mercantile Registry office before you commence any activity related to your business.
- The other two types of mandatory accounting books you require are a minutes book (“libro de actas”), which provides an overview of annual general meetings, and a personnel registration book (“libro de matricula”).
- The tax year is the calendar year in Spain, and the company tax return must occur within 25 days after June 1th.
- Spain has a standard tax rate of 18%, or 25% if your profits exceed € 6,010,121.
- Spanish companies are issued VAT numbers with the format of the country code ES followed by a 9-digit number which ends with a letter.
How can you employ staff in Spain?
Spain’s labor force is known to be one of the most regulated in the region, with ironclad laws protecting the country’s workforce. As a foreign business owner outside your jurisdiction, you may not be familiar with Spain’s specific hiring practices and laws.
CompyCo won’t just guide you on the best practices to employing and retaining staff in Spain, we’ll provide our full-service assistance to ensure your company is legally-compliant in all matters.
Our HR experts provide custom, tailor-made solutions for a variety of HR-related services, including registering your non-resident company as employer, drafting employment agreement, recruiting the top talent for your company, and overseeing the payroll and other HR functions.
As a foreign company in Spain, you might need to hire just one employee to work from home. In this case, we might be able to avoid local company registration for you. Hence, you’ll save the time and effort of going through the entire employment process.
As your HR service provider, CompyCo’s top priority is offering the highest quality services in the most cost-effective way. That’s why all our solutions are geared toward your company’s unique needs!
Do you have any queries? Take a look at our HR services page for more information about our International HR services!