Setting up a company in Spain can be a challenging process, especially for foreign investors and entrepreneurs. However, with the right guidance and support, it can be a rewarding experience.
In this article, we will discuss the steps involved in setting up a company in Spain, the costs associated with the process.
Steps for setting up a company in Spain
Spain is a popular destination for foreign investors and entrepreneurs looking to set up a company.
The country’s strategic location, welcoming business environment, and skilled workforce make it an ideal destination for setting up a business.
Setting up a company in Spain involves several steps.
Choose a corporate structure
The most common types in Spain are Sociedad Limitada (SL) and Sociedad Anónima (SA).
In Spain, there are two main types of limited liability companies: the Sociedad Limitada (SL) and the Sociedad Anónima (SA).
SL is similar to a limited liability company (LLC) in other countries. It requires at least one shareholder and a minimum share capital of €3,000. The liability of the shareholders is limited to their contributions to the company.
The management structure is flexible and can be run by one or more directors, who can be Spanish or foreign residents. The administrative burden and compliance requirements for an SL are lower than those for an SA.
SA is a more complex and formal type of company that is similar to a public limited company (PLC) in other countries. It requires a minimum of €60,000 in share capital and at least three shareholders.
The liability of the shareholders is limited to their contributions to the company. The management structure is more formal, with a board of directors and a general meeting of shareholders. An SA is subject to more stringent regulatory requirements and higher administrative costs than an SL.
Basic steps for setting up a company in Spain
Choose a company name
You need to choose a unique name for your company. Also, the name company should be descriptive, memorable, distinctive and compliant.
Remember to conduct a thorough search of existing company names in Spain before registering a new name to ensure that it is available and not already in use by another company.
Obtain a NIF (Tax Identification Number)
Every company in Spain needs to obtain a NIF, which is a tax identification number. You can obtain this from the Spanish Tax Agency.
Open a bank account
You need to open a bank account for your company and deposit the minimum share capital required by law.
Register the company with the Commercial Registry
You need to register your company with the Commercial Registry in the province where your business will be located.
Obtain a municipal license
Depending on your business activity, you may need to obtain a municipal license from the town hall.
Register for taxes
You need to register your company for taxes with the Spanish Tax Agency.
Register for social security
You need to register your company with the Spanish Social Security system and obtain a social security number for each employee.
Obtain other licenses and permits
Depending on your business activity, you may need to obtain additional licenses and permits from different government agencies.
It is recommended to seek professional legal and accounting advice to ensure you follow all the necessary steps and comply with all legal requirements when setting up a company in Spain.
Cost of setting up a company in Spain
The cost of setting up a company in Spain depends on several factors, such as the type of company, the initial share capital, the number of partners, the extension of the incorporation deeds, and the license for premises.
Some of the general costs for opening a company in Spain are:
The registration with the Registro Mercantil Central (Mercantile Register) requires the payment of a fee of approximately €100.
There are documents that define the purpose, structure, and rules of your company. They need to be drafted by a lawyer or an accountant and signed before a notary.
These are fees that you pay to a public official who certifies your company documents. They vary depending on the complexity and length of your deeds, but they usually range from €200 to €400.
Company Registry costs
These are fees that you pay to register your company with the Registro Mercantil Provincial (Provincial Mercantile Register).
They also depend on your deeds and share capital, but they usually range from €100 to €300.
License for premises
This is a permit that you need to obtain from your local town hall to operate your business from a specific location. It may require an inspection and compliance with certain regulations.
The cost varies depending on your activity and location, but it can range from €50 to €1,000 or more.
Other set-up costs
These may include legal fees, accounting fees, tax advice fees, insurance fees, etc. They depend on your specific needs and preferences.
The minimum set-up capital required for opening a limited liability company (SL) in Spain used to be €3,000, but this requirement changed in October 2019. Now you can set up a company in Spain for just €1, as long as you put aside 20% of your profit until it reaches €3,000.
Transfer money with DNBC Financial Group for businesses
When setting up a company in a foreign country, one of the main concerns for businesses is how to efficiently and securely transfer money across borders.
This is especially important for those looking to set up a company in Spain, a country with a large and diverse economy that can offer many opportunities for businesses.
One solution for foreign companies looking to transfer money to and from Spain is through DNBC Financial Group.
As a financial institution with years of experience in international money transfers , DNBC Financial Group can provide businesses with a fast, secure, and cost-effective way to manage their finances across borders.
DNBC Financial Group offers competitive exchange rates, allowing businesses to get the most out of their money when transferring funds.
Your transfer can be completed quickly, meaning that businesses can receive their funds in a timely manner.
Also, DNBC Financial Group offers low transfer fees, allowing businesses to save money on their transfers.
In addition, DNBC Financial Group prioritizes the security of its clients’ funds, using advanced encryption technology to protect transfers and ensuring that transfers are made to verified accounts.
They offer 24/7 customer support, so businesses can get help with their transfers whenever they need it.
With its competitive exchange rates, fast transfer times, low transfer fees, and emphasis on security and customer support, DNBC Financial Group is a great option for businesses looking to manage their finances across borders.