Spain Company Incorporation
Setup a Company in Spain

Spain is a popular destination for foreign investors looking to establish a company due to its strategic location, skilled workforce, and business-friendly environment. However, forming a company in Spain can be a complex process, with specific requirements and procedures that must be followed.

The most common form of business entity in Spain is the Sociedad Limitada (SL), also known as a Limited Liability Company. This type of company requires at least two shareholders and a minimum share capital of €3,000. The shareholders are only liable for the company's debts to the extent of their capital contribution.

Another popular form of company in Spain is the Sociedad Anónima (SA), also known as a Public Limited Company. This type of company requires at least five shareholders and a minimum share capital of €60,000. The shareholders are not personally liable for the company's debts.

In order to form a company in Spain, several steps must be taken. These include:

1. Choosing a company name: The company name must be unique and not in use by another company.
2. Preparing the articles of association: This document sets out the company's purpose, share capital, and management structure.
3. Opening a bank account: A bank account is required to deposit the share capital.
4. Registering the company: The company must be registered with the Spanish Commercial Register.
5. Obtaining a tax identification number (NIE): This is required for all company directors and shareholders.
6. Applying for a VAT number: This is required if the company will be conducting business in Spain.
7. Registering for social security: All company employees must be registered for social security.
8. Obtaining the necessary licenses and permits: Depending on the nature of the business, certain licenses and permits may be required.

Once the company is formed, it will be subject to Spanish corporate income tax, VAT, and other taxes. It is important to have the help of a professional advisor or lawyer to assist with the company formation process and ensure compliance with all legal requirements.

In conclusion, Spain is a popular destination for foreign investors looking to establish a company. However, forming a company in Spain can be a complex process, with specific requirements and procedures that must be followed.

Spain offers a variety of company structures that are suitable for different types of businesses and investment activities. These include:

1. Sociedad de responsabilidad limitada (SRL) or Limited Liability Company (LLC): This is the most common type of company in Spain and it offers limited liability protection to its shareholders. An SRL is required to have at least one shareholder and one director, and it must have a minimum share capital of €3,000.
2. Sociedad Anónima (SA) or Joint Stock Company (JSC): This is a type of company that is similar to a Limited Liability Company, but it can offer shares to the public and is required to have at least five shareholders and two directors.
3. Sociedad Limitada Nueva Empresa (SLNE) or New Limited Company: This is a new type of company that was created in 2011, and it's aimed at making it easier and cheaper for entrepreneurs to start a business. It has a minimum share capital of €1, and it can be incorporated by one person.
4. Sociedad de Capital Riesgo (SCR) or Venture Capital Company: This is a type of company that is focused on investing in startups and small companies.
5. Sociedad Cooperativa (Cooperative Society): This is a type of company that is owned and controlled by its members, and it's often used for agricultural and consumer cooperatives.
6. Branch office: Foreign companies can also set up a branch office in Spain which is an extension of the parent company and is legally and financially separate.

It's important to note that each type of company has its own legal and financial requirements, and it's recommended to seek the assistance of a local lawyer or accountant to ensure that the chosen structure is appropriate for your business and that all the legal requirements are met.