Company Formation in Spain
Get help Incorporating your company in Spain with our Team of Expert Lawyers.
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To request a free consultation case, please provide us with your contact details below and we will contact you via email or phone.
What types of companies can I incorporate?
Company formation is the ideal way to grow or expand your business into Spain. Some businesses enter the country as a way to sell products or services to a new marketplace, while others use Spain as a springboard to launch operations in South America due to the linguistic and cultural similarities.
Whatever the motivation or goal, there are several legal entities in Spain that can be used to position your business for success:
Subsidiary:
This involves creating a new company, however, it is linked to an existing company and would be one of a group of companies. The existing company can be a local Spanish business or an overseas enterprise but the new company will have its own independent legal personality. This entity enjoys a corporate tax break of 15% during the first year of profitability and subsequent year, compared with 25% usually.
Branch:
This corporate structure does not have its own independent legal personality, which means the parent company would be liable any debts that the branch company incurs. This entity must regular accounting and VAT filings with the authorities as well as its annual accounts.
Permanent Establishment:
This type of entity does not have an independent legal personality, so, like a Branch company, the parent company would be liable for the debts that the Permanent Establishment incurs. This entity, unlike a Branch Company, doesn’t need to have a Public Deed when being incorporated but does need to be registered with the Corporate Register.
Representative Office:
This legal office does not have independent legal personality and therefore, the parent company is liable for its debts. However, unlike a Branch or Permanent Establishment, this entity doesn’t require regular accounting and VAT filings to the authorities. It also doesn’t pay corporate income tax.
Deciding on the right type of company for your business can be challenging, but our experienced team of lawyers can help guide you through the process and ensure that your company formation in Spain is successful.
If you’re ready to start your business journey in Spain or have any questions about company formation in Spain, please don’t hesitate to contact us. Our team of lawyers is ready to assist you and provide the legal support you need to succeed.
Steps for Company Formation in Spain
The stages for forming a corporation in Spain for a foreign national are listed below, although foreigners can contact our team of advisers for more information on these topics:
- Obtain a non-Spanish citizen identity number (NIE), which will enable the investors to go through the incorporation process;
- Choose one of the legal entities permitted by Spanish business law;
- Assemble the necessary paperwork for certification (investors may submit three potential company names);
- Create a corporate bank account with a local Spanish bank, where the minimum share capital of the business will be deposited;
- Create the future company’s statutory documents and sign them in front of a public notary;
- Sign the public deed of incorporation, which must be done by everyone who will be a shareholder in the company.
- Apply for a tax identification number with the Spanish Tax Agency.
How Lexidy will tackles Company Formation in Spain for you
The process of incorporating a company can be very long, expensive and, ultimately, exhausting. International businesses and entreprenerial ex-pats are often unaware of specific regulations set by Capital Companies Act or the Mercantile Register Regulations. This can lead to unforeseen hurdles and complications that delay your market entry, first-mover advantage or even drain your start-up capital.
A lawyer will guide you through the company incorporation process, whether it’s a Limited or Public Limited Company, and make the bureaucracy much simpler. A legal professional has the expert knowledge and practical experience to make the process faster, more affordable and more efficients. For example, a highly-qualified lawyer has regular interactions with Spain’s various public administrations and can glide through the unique requirements and questions, which often complicate the procedure for those unfamiliar with officials.
Even if you successful navigate the corporation process, the Mercantile Register is quick to reject the registration of deeds of incorporated companies. Their meticulous approach will flag any small formal errors and delay the process. A professional lawyer will have the experience to avoid any errors, large or small, to ensure your business gets to market as quickly as possible.
Another benefit of appointing a lawyer when forming a company is Power of Attorney. A company or director can grant legal authority to a lawyer and empowered them to act on their behalf when the officials require someone to appear in person for a particular process. This helps the business save on the cost, time and hassle of traveling to Spain for bureaucratic processes.
The team at Lexidy LegalTech Boutique has years of experience working all clients the world over and their company formation needs. We regularly work with businesses of all sizes throughout the country’s economic centers to position new entreprises for success.
What Our Clients Are Saying
Our law firm has helped numerous clients successfully create, move or stablish their companies in Spain
Contact Us
To request a free consultation case, please provide us with your contact details below and we will contact you via email or phone.
How can a lawyer help with Company formation in Spain?
A lawyer can assist you with company formation in Spain in several ways. Here are some examples:
Choosing the right business structure: A lawyer can help you determine the appropriate business structure for starting a company in Spain, such as a limited liability company, a sole proprietorship, or a partnership, based on your needs and goals.
Registering your company: A lawyer can guide you through the process of registering your company with the relevant authorities in Spain, such as the Commercial Registry or the Tax Office.
Drafting legal documents: A lawyer can draft legal documents for your company formation in Spain, such as articles of association, shareholder agreements, and employment contracts.
Compliance: A lawyer can advise you on legal requirements and regulations applicable to your business in Spain, such as labor laws, data protection laws, and tax laws, and help you comply with them.
Representation: A lawyer can represent you in negotiations with suppliers, customers, and other parties, as well as in legal disputes and litigation.
In short, a lawyer can provide valuable legal advice and support to ensure that your company formation in Spain is successful and compliant with local laws and regulations.
If you’re interested in starting a company in Spain or need assistance with company formation in Spain, we’re here to help. Contact us today to schedule a free consultation with one of our experienced lawyers and learn how we can assist you with your business needs.
Company Formation in Spain with Madeleine Cadwell
“Opening a company in Spain can be complicated, but Madeleine will help you understand the process.
- Getting the NIEs for both shareholders and directors of the company.
- Drafting the bylaws
- Send documents to Commercial Registry
- Open a Spanish bank account”
Quality Life for You and Your Business
Why Spain?
Opening a company in Spain can offer a strategic location at the crossroads of Europe, Africa, and the Americas, making it an attractive option for companies looking to expand their operations globally. Additionally, Spain offers a stable economy, a highly skilled workforce, a competitive tax system, and a supportive business environment, making it an excellent choice for entrepreneurs and businesses seeking growth and success.
Cultural immersion
Experience the rich Spanish culture.
Strategic location
Explore Europe without visa restrictions.
Stable economy
Spain has a stable and growing economy
Delicious cuisine
Taste world-renowned Spanish food and wine.
Affordable living
Cost of living is lower compared to other European countries.
Healthcare access
Access to high-quality healthcare facilities and services.
Skilled workforce
Spain has a highly skilled and multilingual workforce
Access to funding
a variety of financing options available for businesses of all sizes
Frequently Asked Questions
Starting a business in Spain as a foreigner can be a relatively straightforward process, although it may require some additional steps and paperwork compared to setting up a business as a Spanish citizen. You will need to obtain a foreigner identification number (NIE) and register your business with the Commercial Registry, among other requirements.
The most profitable business types in Spain can vary depending on various factors, including market demand and trends. However, some sectors that are currently doing well in Spain include technology, tourism, renewable energy, and healthcare.
Setting up a business in Spain for US nationals is generally easy and follows the same process as for other foreign nationals. However, you may need to consider tax implications and other legal requirements that may differ from the US. Contact us for a free case evaluation!
After Brexit, setting up a business in Spain may require additional steps and considerations, such as obtaining a work permit and meeting new regulatory requirements.
International companies can enter the Spanish market through various means, including establishing a subsidiary or branch in Spain, partnering with a local company, or exporting goods and services directly.
The tax system in Spain is complex and includes several taxes, including corporate income tax, value-added tax (VAT), and local taxes. Businesses are required to comply with tax obligations, including filing tax returns and paying taxes on time.
Labour laws and employment regulations in Spain are extensive and provide strong protections for employees. Employers must comply with requirements related to contracts, wages, working hours, and other employment conditions. Our Legal Labour team can guide you through the requirements.
Funding options for starting a business in Spain include bank loans, venture capital, government grants, and crowdfunding.
Cultural and language barriers may exist when doing business in Spain, but many Spanish professionals speak English, and there are several resources available to help foreigners navigate the cultural differences. It is important to understand and respect local customs and business practices.
Lexidy has experience guiding foreigners through all the steps involved in forming a company. With our legal team you would not feel the language barrier in Spain.
Frequently Asked Questions
Our Team
“We know the legal aspects of getting your business project in a foreign country can be anything but an easy, straightforward process, – that’s why we come in! We will be by your side every step of the way, so you can actually focus your time on your new Spanish Business Project.”