First Steps to Owning Your Own Limited Company in Spain

There are many types of business entities in Spain to choose from, but the most popular business entity is the limited company or the Sociedad Limitada. 

The Sociedad Limitada or SL for short, is similar to the UK Ltd business form and requires an initial capital investment of €3,000. 

So, let’s assume you want to setup a limited company in Spain. Below we’ll go through some of the steps involved: 

1. Before you can set up a business, you will need to confirm whether you’re able to work there. If you’re from the EU, then you can live and work in Spain with no limitations. If, however you’re not within the EU, then you will need to get a work permit. But, there are some exceptions to this requirement, such as academics, specialists and people joining family who have lived in the country for longer than a year. 

2. Now that you’re registered to work, or you’re already eligible, the first step to set up your business is to apply for a tax identification number or NIE. The NIE is required for any financial dealings that are to take place in Spain. 

You can apply for an NIE in one of Spain’s immigration offices, which are usually situated in police stations. To find your local immigration office, click here. 

When you go to the immigration office, you will need to supply the following documents: 

• A completed NIE application form 

• A fee is applicable to obtain the NIE, so you’ll need to supply a proof of payment stamped by the bank. 

• You’ll also need to take your passport or ID card with you, plus a photocopy, along with two passport-sized photos. 

Finally, you’ll need to issue information noting the reasons of your application of the NIE. This can be in a form of a letter written and notarised by a notary, stating that you wish to set up a business. On some occasions, this process can be lengthy, so allow between 2-6 weeks before you get your NIE number. 

3. Once you have received your NIE number, then the procedure of formally setting up your company can begin. The first thing you will need to make sure, is that your company name hasn’t already been used in Spain. To verify that no other business is using your chosen company name, you will need to get a “no-name coincidence” certificate from the Mercantile Registry. Fortunately, you don’t need to queue for hours in government buildings to get this information, you can do this yourself by visiting their website here and you’ll get your certificate between 3-5 days.

4. Now that you have your company name certified and have an NIE number, you will need to get a tax ID code. To apply for this, you will need to fill in an application form and then submit it to the local tax office. You can click here to download the form. 

In addition, you’ll also need to present your NIE number to the tax office, and if all details are in order, you’ll get your tax code on the same day. 

5. With the tax code obtained, as well as the no-name certificate, then you will have to pay a minimum capital deposit of €3,000 into your Spanish business bank account. 

Once the deposit has been paid, you will need to request a proof of payment and present it to your notary. 

6. To help you along the way with the administration involved with setting up your limited company, you’ll need to hire a local notary to administrate and notarise legally binding documents. The notary will also sign the deed of incorporation. You’ll need to supply your notary with the following documents: 

• Tax code form 

• Certificate of registration from the Mercantile Registry 

• Your tax identification form (NIE) 

• Proof of payment of capital deposit into your business bank account 

              To find a notary in your region, you can search online by clicking here. 

7. Once you have received your deed of incorporation, you will need to get it stamped at the tax office. You’ll need to take all documents with you, including a photocopy of the deed as well as your NIE certificate. This process shouldn’t take any longer than half a day. 

8. You’ll have to then revisit the Mercantile Registry in order to get your company registered in the Spanish Register of Limited Companies. This process takes about two weeks. 

Once you have been prompted to collect the deed, you’ll also be issued with a certificate from the registry to show that your company has been registered. 

9. Once your company has been registered, you’ll need to go to the tax office once more to acquire a corporate tax identification number. To obtain the number, you’ll need to take all previous documents with you. 

Starting your own business can be a very laborious and stressful task whatever country you’re in. 

To help you get set up and hit the ground running with your new business overseas, you should hire an accountant and/or solicitor to help you through all of the processes and legalities. 

Yes, it’s an additional expense, however, their experience and advice will prove to be invaluable. They’ll also be a great asset to network with other business owners in and around the region of your business.