Who wouldn’t wish to be their own boss? How many people have dreamed about starting their own business and realising all their plans and ambitions? Well then, follow our 7 Steps to Start a Company in Spain and live your dreams starting today.
If you’re still reading, you’ll be glad to know that starting a company in Spain is quite straightforward. For many, it starts with establishing a Limited Liability Company (LLC) in Spain. Ready to discover how to start a company in Spain like a pro? Let’s dive in.
Table of contents
What is a Spanish LLC (Sociedad Limitada or SL)?
A Limited Liability Company (LLC) in Spain is known as an SL, or Sociedad Limitada. It is essentially Spain’s version of a Limited Liability Company (LLC). This is a highly popular option for both locals and foreigners who are looking to start a company in Spain.
One of the reasons for its popularity is because it is highly flexible, meaning our partners can set your own company rules. Because of this flexibility, the LLC in Spain is often the first choice for small to mid sized companies.
Benefits of Starting a LLC Company in Spain
In Spain, setting up a Limited Liability Company (LLC), comes with a range of benefits of benefits:
- You can own 100% of the shares as a foreigner.
- Your personal risk is limited to what you invest.
- You can start with just one shareholder and one admin.
- You only €3,000 needed to start.
- You can register online, fast.
- Being in the EU opens doors to other markets.
So, if you’re looking for a business structure that’s low-risk, flexible, and EU-compatible, an LLC could be your golden ticket.
7 Steps to Start an LLC Company in Spain
You’re confident that starting a company in Spain is the right choice for you? Great! But what are the steps you need to take to make this a reality? Well, we’ve compiled the 7 steps you need to take to get your Spanish business off the ground. Let’s dive in.
- Register the company’s name
- Open a Spanish bank account
- Draft Articles of Association
- Sign Public Deed
- Register Public Deed
- Obtain a NIF number
- Complete a D1-A Form
Important note: Depending on the type of company, or its activity, the process can vary. That’s why it’s important to consult with a legal expert, like the team at Lexidy. We’re here to help you through each step of the way so the process is clear and seamless.
Now that you have an overview of each of the steps, let’s dive into more detail. Below, you can read an explanation of each step, and what the timeline could look like to establish your LLC in Spain.
How Can We Help You?
Schedule a free consultation below and one of our lawyers will be in touch.
1. Register the company’s name
Firstly, you need to submit a request for the name of the company. The Spanish Commercial Registry allows you to submit a list of five possible names, in order of preference.
2. Open a Spanish bank account
Next, you should open a Spanish bank, with a deposit of at least 3,000 Euros, which is the minimum share capital for an LLC in Spain.
3. Draft Articles of Association
Following, you need to draft The Articles of Association. This includes the following information: the company name, purpose, address, share capital, organisation, and the way in which decisions will be made on the company’s behalf.
Later, all the shareholders must sign the Public Deed of the company.
4. Register Public Deed
Afterwards, you must be register the Deed at the Spanish Commercial Register. In Spain, a public deed of a company is the legal document that formalises the creation of a company. It contains all the relevant information about the company, such as its name, purpose, share capital, and the identity of its shareholders and directors. This document’s name is the “escritura pública” or “deed of incorporation”.
5. Sign Public Deed
Later, all the shareholders must sign the Public Deed of the company.
A notary public or legal team prepares the public deed of a company, certifying the authenticity of the signatures of the shareholders and directors, and the accuracy of the information contained in the document. Once the public deed is signed and certified, it is registered with the Spanish Commercial Registry, which is the official register of companies in Spain.
The public deed is an important document for a company because it establishes the legal existence of the company and sets out the rights and obligations of its shareholders and directors. It is also required for a number of administrative procedures, such as opening a bank account, registering for taxes, and obtaining a business license.
6. Obtain a NIF number
Also, you need to apply for a Tax Identification Number (NIF). You apply by filling in Form 036 and presenting it to the Spanish Tax Agency.
- If you have been issued a NIF in the past, you should not apply for a new one. You can check if you have a NIF by asking a Spanish embassy or consulate, or by contacting the Spanish Tax Agency.
- Make sure to get the NIF you need. It can be used for different purposes, such as personal taxation, business taxation, or non-resident taxation. The type of NIF you need will depend on your specific situation.
- Remember that to apply for a NIF, you will need to provide certain documents, such as a valid passport, a residency certificate (if applicable), and any other documents required depending on the type of NIF you need.
- You can submit your NIF application in person at a Spanish Tax Agency office, or online through their website. If you apply in person, you will receive your NIF immediately. If you apply online, you will receive your NIF by mail.
- There is a fee for obtaining a NIF, which can vary depending on the type of NIF you need. You can pay the fee at the Spanish Tax Agency office, or online through their website.
7. Complete a D1-A form to start your company in Spain
Lastly, to declare foreign investment, you will need to register with a D1-A form.
In Spain, the D1-A form is a document used to apply for a Non-Resident Identification Number (NIE). The NIE is a unique identification number for non-Spanish residents who need to do certain transactions in Spain. This is for those who want to buy property, start a business in Spain, or open a bank account. You use the NIE for tax purposes, including filing taxes and obtaining a Spanish VAT number.
The D1-A form includes personal information such as your full name, address, nationality, and passport details. It also includes information about the reason for your application, such as the purpose of your stay in Spain, the type of transaction you wish to conduct, and the expected length of your stay.
To apply for a NIE using the D1-A form, you will need to provide a valid passport or ID, proof of address (example: utility bill), and any other relevant documents as required for the reason for your application.
You can submit the D1-A form in person at a Spanish embassy or consulate, or at a police station in Spain. Once your application has been approved, you will be issued a NIE certificate. It is valid for a specific period of time and can be renewed if necessary.
How Long Does the Process Take to Start a Company in Spain?
The timing to start a company in Spain depends on whether you go through the 7 steps to start your company in Spain from within the country – or whether you empower someone else to do it for you remotely by Power of Attorney:
- In the case that you transfer Power of Attorney (basically empowering us to incorporate your company remotely, without you coming to Spain) it takes 2 weeks. This is from the moment the paperwork is turned in.
- If you’re in Spain and can submit the paperwork yourself, it takes 5 business days from the moment you submit the paperwork.
How can Lexidy Help me Start a Company in Spain?
Ready to take the leap and start a company in Spain? Or maybe you still have some additional questions about whether an LLC is the right for your business? Whatever it is, our team of multilingual legal aces are here to help clarify your questions and set you on a path to success!
If you want to know more about the establishment of a Limited Liability Company in Spain, and how we can help you get started, then simplyfill out the free consultation form below and we will be in touch. Our team are happy to be your guiding star and help you achieve success in your new endeavour!
Updated by Lexidy Staff October 2023
