If you are thinking about setting up a company in Spain you are reading the right article. We are going to study two questions that every entrepreneur asks himself before starting a business in Spain:
- Why set up a company in Spain?
- How to set up a company in Spain?
The truth is that the complexity involved in setting up a company makes many entrepreneurs give up long before starting any procedure. To make sure you don´t get overwhelmed by it all, the first step you should take is to find a good Asesoria / Gestoria / Law Firm who will advise you on everything you need to know about setting up your company.
Let’s study the 2 previous questions:
Why set up a company in Spain?
The Iberian Dream. After a period of crisis that has spread more than expected, Spain is facing a moment full of opportunities for foreign investors who wish to start new projects.
Spain is currently ranked 5th in economic power in Europe and 14th in the world, along with its 45 million residents and almost 80 million annual tourists, Spain provides a wonderful opportunity to start or extend a business.
In addition, Spain has one of the best communication and infrastructure networks in Europe, and one of the best in the world. Ranking 12th, according to the World Economic Forum (WEF).
Also, Spain has the advantage of being directly connected to America (especially Latin America), the African continent and Europe, of course.
For all of the above reasons and more, Spain is renowned to be The Iberian Dream, a land of opportunities.
How to set up a company in Spain?
Below, we will list the different steps to follow to set up a company in Spain.
– Firstly, it is necessary to establish the most appropriate legal form, for this we must take into account the following parameters:
- Responsibility: limited or unlimited.
- Partners: One, two, three or more.
- Social Capital: Without minimum, Between € 3,000 and € 59,999, between € 60,000 and € 120,000, more than € 120,000.
The most commonly used is Sociedad Limitada or SL: Responsability limited, one or more partners and 3000€ of Social Capital.
– Once this you have chosen this you must obtain the Negative Certification of the Mercantile Registry, that is, the name we want for our company. This is done through the Mercantile Registry.
– If you are not Spanish, you must request a NIE number – Fiscal Identification Number. Every member must have one and the Ministry of the Interior delivers it through the National Police.
– We must then obtain a Banking Certificate that shows the minimum mandatory deposit according to the chosen legal figure.
– It will then be necessary to sign the deed of the company in front of a notary. For this it is necessary to provide the provisional CIF (obtained from the Tax Office / Hacienda) of the company and the statutes. –If you already own your business in another country and want to register your company in Spain, then, you should read How to Register your Company in Spain–
– You will also be required to register the company in the corresponding provincial Mercantile Registry.
– After registering the company, within the next 6 months you will need to request the Definitive Tax Identification Number (CIF) of the company and the Registration in the Treasury regarding the economic activity that will be carried out.
– Lastly, we must legalize the books of companies (inventory book, annual accounts book and daily book) in the corresponding Mercantile Registry of the province.
Now, almost all of these can be done all together through CIRCE, The Information Center and Network of Creation of Companies (CIRCE) this is an information system that allows you to carry out in a telematic way, the procedures for the constitution and start-up of certain mercantile companies in Spain.
The PAE -a part of CIRCE- (Point of Attention to the Entrepreneur) can help you register your company by reducing the time frame, because the traditional route exceeds 30/45 days.
Those of us who are PAE, like myself, can set up companies or freelancers in a much shorter period of time.
If you are thinking about starting a company in Spain, first of all, I suggest you of contact a good Law Firm with English speakers advisors to understand the whole process.