Registration of Business in Spain

How to open a business in the Spain?

Spain is one of the EU countries with the most favourable conditions for doing business. Being a neighbour with Portugal and France, Spain allows its entrepreneurs, without any restrictions, to enter the markets of these countries. Possibility to use seaports with further access to the Mediterranean Sea and the Atlantic Ocean, does not leave indifferent any successful businessman.

Business in Spain

Probability to organize successful business in Spain is quite high. Large population, a lot of skilled labour, government programs for business development are a few that determines the success of the country's economy. Flexible national legislation makes no distinction between foreign investors and residents.

According to representatives of some companies, which previously established business in Spain, the following factors can be deemed as advantages of doing business in this region:

1. Developed economy,
2. Strict legislative base,
3. Government programs for the support and development of small and medium businesses,
4. Simplicity of registering a company,
5. Concessional lending,
6. Lack of bureaucracy,
7. Huge perspective on the EU market,
8. Possibility to obtain a residence permit.

Depending on the set goals and tasks, you must first study the following most optimal forms of companies in order to open business in Spain:

1. Individual entrepreneur.
   The founder is a natural person who is liable for the obligations of the enterprise with all its property. There is full personal control and no restrictions on deposits.
2. Public limited company.
   The number of participants is not limited. It is possible to issue registered and bearer shares. There are no restrictions on the transfer of shares to third parties, subject to the appropriate entry in the register of shareholders.
3. Closed limited company.
   Only issuance of registered shares is allowed, their transfer has limitations. Shareholder liability is limited to the amount of funds invested in shares.
4. Partnership.
   The relationship of two or more founders is governed by an agreement, which specifies the amount and terms of responsibility of each of them, as well as features of the management of the company. It has a special tax regime.

Registration of Business in Spain

The process of establishing and and registration of a company in this country is not complicated. Indeed, the slightest deviation or inaccuracy in the constituent documents may entail the refusal of the registering government agency. In order to avoid such a probability, you should contact a qualified expert.

In general terms, the registration of  business in Spain is as follows:

1. Verification of the uniqueness of the company name,
2. Preparation and notarization of constituent documents,
3. Depositing funds to an account in a local bank in the form of share capital,
4. Registration of constituent documents in the registration authority,
5. Payment of constituent fees,
6. Registration with the tax authority.

Some types of activities may require licensing. On average, business registration in Spain takes up to 2 weeks, so in some cases the idea to buy business in Spain is regarded as more convenient.

Important information:

• All residents of Spain receive an individual NIE identification code,
• Registered companies receive a corporate CIF identification code,
• Taxation has a three-tier system: the state budget, regional and local,
• Spain signed a number of international acts that prevent double taxation,
• Depending on the region of incorporation, different tax rates apply,
• Entrepreneurs have the opportunity to take advantage of doing business under Spanish jurisdiction, but with a softer tax regime in the Canary Islands.

For maximum protection against possible errors during the process of company registration, we suggest contacting the specialists of our company. We will provide full qualified consultation on all matters related to establishment of business in Spain and its efficient management.

Please, select organizational and legal form of the company You are interested in: 

Spain-SA

Spain-SL

Tenerife

For reference:

• Sociedad Anonima (SA) - a public company with limited liability
• Sociedad de Responsibilidad Limitada (SL or SRL) - private company with limited liability
• Sociedad Civil (SC) - Partnership