Company formation in Spain : Form a company : learn more
Here are the steps in brief:
- You call us or fill out the contact form.
- Once we have the information we need, we begin working immediately on your company.
- When everything's ready, we'll contact you so you can schedule a trip to the notary for the signing. The moment you sign, you will have a legal company with a tax ID, so your company may begin operations in Spain.
FAQs:
What does the price include?
Are there any other costs involved in forming a company in Spain?
Do I need a NIE?
How long will it take?
What information do you need to get started?
Will the company have a VAT number?
Can a foreign company be the sole shareholder?
Can I avoid the trip to Spain?
What steps are involved in forming a company?
Should I form a new company or buy an off-the-shelf company?
What are the tax and accounting obligations for a company in Spain?
What if I want to change the company name, corporate address, etc. later on?
Why is it so expensive to form a company in Spain?
What should I look out for when shopping for incorporation services in Spain?
The price covers all costs to have your Spanish company up and running. This includes notary fees, Mercantile Register fees, and transfer tax/stamp duty (only for the minimum backing capital of 3006€).
The price does not include VAT tax.
Are there any other costs involved in forming a company in Spain?
There are no other costs, unless you don't have a NIE. If you would like to sign with a notary of your choice, or in a city where we are not represented, then please contact us for a quote.
Once the SL is established, you are required to fulfill tax and accounting obligations, even if you have no invoices.
Do I need a NIE?
Yes, all directors and shareholders of the company need a NIE, as a result of the Fraud Prevention Act which came into force on February 2005. If you don't have a NIE, you can apply for it in person at the Spanish consulate, or in any Oficina de Extranjeros in Spain. If you like, we can accompany you to the Oficina de Extranjeros in Barcelona. We charge 140 euros for this service.
How long will it take?
| Time to complete | ||
|---|---|---|
| Task | New company | Off-the-shelf company |
| Get the name approved | 6-12 days* | X |
| Get the company tax ID (CIF) | 1 day** | X |
| Prepare to sign at the notary | 1 day | 1 day |
| Receive certificate of company registration | 20-30 days*** | 20-30 days*** |
*If all three names you provide are rejected, then we will ask you for three more names, and repeat the process. For this reason, it's important that your third choice is a safe choice that will ensure approval.
**Completing this process requires that you have a NIE. Getting a NIE may take time, so you should begin that process as soon as possible.
***We cannot guarantee this time, since this depends on the Mercantile Registry, but this time span has been our experience in almost all cases.
What information do you need to get started?
We need:
- Your top three choices for the name of the SL.
- A scanned or faxed copy of the passport of the director(s).
- Payment by credit card or bank transfer.
Will the company have a VAT number?
Yes, the company will have a Spanish tax ID (CIF), which is the VAT number. You will have the tax ID the day you sign at the notary. With the tax ID, your Spanish company can do business anywhere in the EU.
If the company will be exchanging frequent invoices with companies in the EU but outside Spain, then you may want to be listed in the EU VAT registry (censo VIES) so you won't have to bill and be billed for IVA in your EU transactions. As part of our accounting service, we will apply to have your company registered if you request it.
Can a foreign company be the sole shareholder?
Yes. Note, however, that a company may not be the director. The director has to be a person.
Can I avoid the trip to Spain?
Yes, you can give us a power of attorney. Please contact us about the best way to get a power of attorney.
What steps are involved in forming a company?
The steps are as follows:
- Register the company name at the national Mercantile Register, making sure the name chosen is unique.
- Draft the statutes and by-laws for the company's constitution.
- Get a temporary tax ID number (CIF) for the company.
- Communicate with the notary: Review all documents, and make all necessary preparations for the signing.
- Go with the client to sign at the notary's office.
- Pay the transfer tax/stamp duty.
- Register the company at the local Mercantile Registry.
- Publish the company information in the Mercantile Registry's Boletín Oficial.
- Get a permanent tax ID number (CIF) for the company.
While we don't list every detail of what we do, we guarantee that all required tasks to form your company will be completed.
Should I form a new company or buy an off-the-shelf company?
With an off-the-shelf company, you save the step of registering a new name (6-12 days). As soon as you come to sign at the notary, your company can begin operations. If you want to change the name of the company later on, though, there will be notary and registry fees for making the change.
What are the tax and accounting obligations for a company in Spain?
You are required to file tax forms every quarter, as well as yearly tax forms. You are also required to fill out four accounting books, and present them yearly to the Mercantile Register. These requirements hold true even if your company has no financial movement. See our Accounting page for more information.
What if I want to change the company name, corporate address, etc. later on?
If you want to make a change to your title, the following table explains the procedure and costs.
| Description | Fees* |
|---|---|
| Give a power of attorney to Strong Abogados so you won't have to take another trip to the notary. Do this in the first trip to the notary if you think you might need to make a change to the title in the future. | free |
| Change of:
|
hourly rate (min. 250€) |
| Change of director. This cannot be effected with a power of attorney. The new director will need to take a trip to the notary's office. | hourly rate (min. 250€) |
| Change of business address to a different province. (This change must be registered with the Mercantile Register for that province.) | hourly rate (min. 350€) |
Why is it so expensive to form a company in Spain?
In the UK and the USA, forming a company can be done online. In Spain, company formation requires at least eight visits in person to various offices.
What should I look out for when shopping for incorporation services in Spain?
- Be sure to find out whether the price of the service includes the notary and registry fees, as well as transfer tax/stamp duty.
- When a company is formed, a temporary CIF (tax ID) is requested. Later, this CIF is made permanent. Be sure that the CIF you receive is permanent.
- Once you have the CIF, you can start billing for the company. However, you cannot activate your bank account for the company until the company has been registered at the Mercantile Register. The time it takes to register varies from province to province, so make sure you ask when you will be able to start using your bank account.
- Once the company has been formed, make sure the form to initiate business activity has been presented and stamped.