Who can start a company in Spain?
Everybody is allowed to start your business in Spain. No matter if you are a foreigner or a Spanish citizen.
If you are a foreign company, before setting up the company you need to apply for a tax number (NIF).
Related article: Foreign company: how to apply for Spanish tax number?
If your a foerigner, you need to have a NIE number. You do not need to be a resident.
Related article: What is NIE in Spain?
Setps to set up a company in Spain
- STEP 1: Choose the type of company
There are two main types of companies which are the SL (Sociedad Limitada) and the Sociedad Anónima (SA).
SL is the most used in Spain, because is vey simple to manage and only requires a mininum of 1€ share capital. Altough the most common is to set the share capital at 3000€.
SA is less common and requieres a minimun of 60000€ in share capital.
- STEP 2: Register the company name
Before the company incorporation, you should apply for a certificate before Companies Registry, that confirms the name is valid and available.
The certificate of availability of a name is valid for 3 months (renewable for another 3 months).
- STEP 3: Incorporation deed
To set up a company in Spain, all the shareholders must sign a deed of incorporation before a notary public. This deed of incorporation will include the articles of association (or bylaws) that the founding shareholders have previously drafted.
Note: According to the Spanish Corporate Enterprises Act, nowadays it is not necessary to open a bank account before the incorporation is completed. You skip this step and open the account later, which would be easier.
If the shareholders are foreigner of foreign entities, you shoudl obtain the NIE or NIF number previously.
- STEP 3: Tax office registration or application of NIF (tax number)
The company is validly incorporated since the signature of the deed of incorporation and can start its activity.
From the tax law perspective, all limited liability companies must register with the Spanish Tax Office and apply for a NIF number (the Spanish name for the VAT number).
- STEP 4: Commercial Registry
The company must be registered before the Commercial Registry, otherwise the shareholders will remain jointly liable of the company debt.
