Form a Company in Spain

Start your Spanish business off on the right foot. We offer:

• Great service: Personalized help in your language, plus a client area tailored for our accounting and payroll clients.
• Lowest price: Free company formation when you use our corporate tax filing services for one year.
• Expertise with international clients: We make sure the company is formed correctly for a non-resident director.

Companies doing business in Spain are required to have a corporate address (domicilio) in Spain. Your SL will be registered at the provincial Mercantile Registry corresponding to this corporate address. It is the public address that shows up if anyone does a search on your company, such as a credit search or a search for judicial reasons. It is also where your year-end accounting books get sent to.

Besides providing your business with a corporate address, as part of our service we will inform you of any requests received regarding your company.

Depending on the type of company you set up, you will need to fulfill Spanish regulations with regard to accounting, auditing and tax filing. Choosing the type of entity and determining its relationship with the parent company (if there is one) or international shareholder requires knowledge of Spanish mercantile law. In our experience, having the proper setup with help from professionals will save you money and time in the end. For example, changing the company director can take more time than forming a new company.

Please contact us to make sure that your corporate setup suits your needs.

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How long will it take?

Once you have your NIE, the following chart shows the usual time scale for the company to be fully established.

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, please read our guide to obtaining a NIE number.

What are the steps to form a company in Spain?

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.

We guarantee that all required tasks to form your company will be completed.

What information do we need from you to get started?

We need:

• A filled out service agreement.
• A scanned or faxed copy of the passport and NIE of the director(s).
• Payment by credit card or bank transfer.
• Three options for the name of the company, in order of preference.

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.

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 (VIES) so you won't have to bill and be billed for VAT in your EU transactions. Please see our VIES registration page for more information, or contact us to apply for VIES listing for your company.

What costs are involved in forming a company in Spain?

You can either choose our standard company formation (1600€) or our offer of a free company when you pay for one year of accounting. In both cases, all fees are paid for -- notary fees, company registry fees, and transfer tax/stamp duty (based on the capital shares of the company, which currently have a minimum of 1€ although responsibility is still limited to 3.000€).

Note that before you can form a company in Spain, you need to have a NIE. Just let us know if you don't yet have one.

Once the SL is established, you are required to fulfill tax and accounting obligations, even if you have no invoices.

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.

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 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 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.

Why choose Strong Abogados?

• We celebrate our 20 years of expertise in the establishment of international businesses in Spain.
  To date, Strong Abogados has formed 1960 companies, all for international clients. Our company formation is guaranteed: if you are unhappy with our service, we give your money back. The Spanish tax authorities have sometimes requested input from our founding partner, Pura Strong, regarding modifications to the VAT regulations.
• We provide full corporate compliance services AFTER your Spanish company is formed.
  By having corporate/tax lawyers, accountants, and payroll specialists in the same office, your business needs are covered, and information passes between them without requiring your intervention. Our expert tax planners can help minimize your tax burden, such as advising on the best way to move capital from the parent company to the new Spanish company, and how much salary the company director should receive.
• Our turnaround time is faster than a "Big 4" firm because of our size and use of cutting-edge technologies.
  We are certified by the tax authorities and by the social security office to send all documents electronically, cutting down on time, costs, and the chance of papers getting lost. We work hard to be among the first in taking advantage of the Spanish government's technological initiatives.

Learn more about company formation options:

Should I be self-employed or should I form a company in Spain?

If you are self-employed (autónomo) and someone files a lawsuit, then you are liable -- your personal assets may be taken from you. If you form a company, then only the assets of the company are at stake. Normally, self-employment is the option when you're just starting out and aren't ready to commit money for company formation and accounting. See our FAQ on the relative costs and tax rates for the two options.

A common situation is that you live in Spain and work for a foreign company. If the company wants you to be hired as an employee, then depending on the duration of your work, the company can either hire you directly or it can get a href="https://www.strongabogados.com/social-security-registration">Spanish employer number to hire you. If you plan to work as a consultant, then the decision between self-employment and forming a company is primarily a tax decision based on how much you will be earning. Self-employment has an additional issue concerning invoicing the company (click here for more).

Read this article for more information on how to register as self-employed.

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 (4-6 days). The problem is that in order to register the change of company director, the company registry can take longer than it takes to register a new company. The law stipulates that a new SL must be registered in 15 business days, but there is no time limit specified for changes to an existing company. The bank account won't be in your name until the company registry delivers the stamped company title, so if the use of a bank account is urgent, an off-the-shelf company is not the best option.

Will creating a company in Spain help me get Spanish residency?

As long as the company will be a real, functioning business, then it can help you get Spanish residency through a vehicle called an investment visa, provided you go through the proper steps.