The incorporation of a company in Spain is very similar to any other country within the European Union, given that a lot of legal obligations are general regulations covering the EU. However, most of the legal and financial responsibilities will be local and national jurisdiction. So when forming a new company, or buying a ready-made one, the overall process, apart from the initial company registration, will be very similar. The normal registered private limited company in Spain is a “Sociedad Limitada” or commonly seen as “S.L.”.
In order to make any form of transaction in Spain especially financial, you must integrate into the Spanish system, whether partially or completely. Complete integration refers to someone who wishes not only to begin a business in Spain, but also live in Spain or at least reside in Spain on a prolonged basis. To begin with the individuals who are to be involved in the company formation must each get personal Spanish national identification numbers, or “NIE”. Then they are able to proceed with the process. It will also be essential for the corporate registration and for the allocation of tax codes, for the company and the individual.
There is a lot of documentation required in the forming of a new company, and of course it takes some time to establish all the registration, but usually as long as most of the paperwork is available the process can take around a month and in many cases less.
In recent years there are many government grants and incentives to boost the economy and help business owners start and run their businesses. Different sectors will have different benefits, as well as depending on individual cases and the size of the business. At the same time, there are a number of Residence Permits available when you form a Company in Spain that worth to be known.
The incorporation of a company in Spain is very similar to any other country within the European Union, given that a lot of legal obligations are general regulations covering the EU as a whole. However, most of the legal and financial responsibilities will be formed according to local and national jurisdiction. So when forming a new company, or purchasing a ready-made company , the overall process, apart from the initial company registration, will be very similar. A registered private limited company in Spain is a “Sociedad Limitada” or commonly seen as “S.L.”.
In order to make any form of transaction in Spain especially financial, you must integrate into the Spanish system, whether partially or completely. Complete integration refers to someone who wishes not only to begin a business in Spain, but also live in Spain or at least reside in Spain on a prolonged basis. To begin with the individuals who are to be involved in the company formation must each get personal Spanish national identification number, or “NIE”. Then they are able to proceed with the process. It will also be essential for the corporate registration and for the allocation of tax codes, for the company and the individual.
There is a lot of documentation required in the forming of a new company, and of course it takes some time to establish all the registration, but usually as long as most of the paperwork is available the process can take around a month and in many cases less.
In recent years there are many government grants and incentives to boost the economy and help business owners start and run their businesses. Different sectors will have different benefits, as well as depending on individual cases and the size of the business. At the same time, there are a number of Residence Permits available when you form a Company in Spain which are worthwhile knowing about.
The company apart from the name will be associated and identified with its tax code, or CIF in Spain. Every company in Spain must have a tax code and be registered with the tax authorities. The tax code allocated to the company is what is required to issue all company invoicing and corresponding taxes. The companies CIF is also required to open a corporate bank account, import goods to Spain, acquire shares, and buy property. The CIF will have nothing to do with whether you have a fiscal presence in Spain or not, because you as a person are able to have a solely fiscal presence in Spain for financial purposes.
Corporate tax does differ from country to country, and Spain is no exception. In Spain the tax obligations, can depend of the size of the company and the origin of the revenue generated.
The general corporate tax is a national Spanish tax and as a company in Spain, with a standard level of activity your Corporate Tax may begin with a flat rate of 23% from the year 2023.
It is essential to be informed in order to plan your finances correctly, when forming part of a company there are tax and accounting obligations that will have to be fulfilled.
ABAD law and accounting firm have at your disposal a fully qualified, professional and experienced team that will be able to take your tax worries off your hands and ensure that you don’t end up paying more than you need to, in any circumstance.
FAQs
Yes there are Spanish grants and incentives, as well as there being European ones that also apply in Spain, with the aim of stimulating the economy. Aid for businesses can consist of anything from a funding, a loan, grants, tax credits and more.
In order to incorporate a company the company must have a Spanish address to which any correspondence can be received, this is particularly needed for certain taxes, as well as for the initial registration. It is not uncommon for business to use their legal / financial representation address for registration, especially as they are the ones doing their taxes.
Yes you will need a NIE number to do any form of financial transactions in Spain particularly director, administrators and shareholders. A NIE number is easily obtained and ABAD if given power of attorney can do it for you, without you even being in Spain.
No, you do not need to be in Spain, if you give power of attorney, then as long as the solicitor has the appropriate documentation they can complete the process for you registering the company with all the correct authorities and getting running.
The process as a whole can take between 30 days and two months to complete, which can be less if, all the paperwork is readily available and no complications arise.The process as a whole can take between 30 days and two months to complete, which can be less if, all the paperwork is readily available and no complications arise.
It will be completely up to you depending on what you what your company to be. A ready-made company does have the benefit of taking less to change hands and therefore, we will be able to being business quicker including starting to invoice.
Like any and every country, if you own a business in Spain then by law you as an individual, but more importantly for the company must submit your accounts and tax forms, as well as making sure that all the corresponding taxes are paid and up to date. In Spain accounts are submitted to the tax office every quarter, with in a set dead line. In term of personal taxes, you will have to submit an annual tax return form. Spanish taxes can be divided in to two types which will be the national taxes, which are covered and are the same all over Spain and then local taxes which will depend on the region in which the business is located. The corporation taxes that apply to your business will depend on its size and nature.
The needed capital is 3000 Euros in a Spanish bank account, which will also need to be set up.
