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Company Formation in Spain

Set your business up for success in Spain

Company Registration in Spain

There are precise steps that must be taken in order to form a Spanish corporation while launching a business there. It is highly recommended for international businessmen to have legal aid and legal representation on such proceedings, especially if they are unfamiliar with the local legal system.

At Lexidy we can offer assistance with company formation services. We list the following services that investors can get: company registration, services relating to investments, expert guidance regarding the Spanish real estate market, and tax counsel. 

Contact us now to get your free consultation case and we will help you with the process.

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What types of companies can we 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:

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.

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.

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.

The above entities all have different approaches to and requires for accounting. This table shows the unique flavor and legal needs for each: 

 

 

NEW COMPANY

SUBSIDIARY

BRANCH

PERMANENT ESTABLISHMENT

REPRESENTATIVE OFFICE

Individual legal personality

Yes

Yes

No

No

No

Incorporation

Public Deed

Public Deed

Public Deed

Communication to Tax Authorities

Communication to Tax Authorities

Register with Commercial Register

Yes

Yes

Yes

No

No

Is the Parent Company legally Liable?

No

No

Yes

Yes

Yes

Tax and accounting obligations

Monthly accounting. Quarterly VAT

Monthly accounting. Quarterly VAT

Monthly accounting. Quarterly VAT

Monthly accounting. Quarterly VAT

No

Annual Accounts

Yes

Yes

Yes

No

No

Corporate Income Tax

Yes with a reduced rate of 15% in the first profitable year and following year

Yes

Yes

Yes

No

Payroll Obligations, like Social Security

Yes

Yes

Yes

Yes

Yes

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:

  1. Obtain a non-Spanish citizen identity number (NIE), which will enable the investors to go through the incorporation process;
  2. Choose one of the legal entities permitted by Spanish business law;
  3. Assemble the necessary paperwork for certification (investors may submit three potential company names);
  4. Create a corporate bank account with a local Spanish bank, where the minimum share capital of the business will be deposited;
  5. Create the future company’s statutory documents and sign them in front of a public notary;
  6. Sign the public deed of incorporation, which must be done by everyone who will be a shareholder in the company.
  7. Apply for a tax identification number with the Spanish Tax Agency.

Costs of setting up a company in Spain

Investors incur a number of expenditures as a result of the Spanish business incorporation process. The following are some examples of the general costs of starting a business in Spain:

  1. Registration charge: A fee of about EUR 100 must be paid in order to register with the Registro Mercantil Central (Mercantile Register);
  2. Cost of a virtual office: about EUR 80 per month; The virtual office is the most affordable and practical way to get a Spanish business address, which is required to conduct business;
  3. A limited liability company requires a minimum share capital of EUR 3,000; the fees associated with incorporation vary depending on the legal entity chosen;
  4. Company formation Fee: Our team of advisors in Spain can provide this service at a competitive price of around EUR 1,500;
  5. Accounting costs: This service runs about EUR 100 per month, and for this amount, investors may obtain guidance on issues relating to bookkeeping and corporate taxation.

How can a lawyer help me?

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.

¨We will be with you each step of the journey.¨

 

Find your Lawyer

About Corporate Department

“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.”

-Corporate Team

Héctor Lopez Vazquez

Head of Corporate Department

Madeleine Cadwell

Paralegal

Marta Ametller

Paralegal

Samuel Ortega Vega

Lawyer

What clients say about us

Lexidy Legal Tech
4.9
Based on 437 reviews
Declan Ryan
Declan Ryan
20:48 01 Jun 22
The Lexidy team is uniquely positioned to provide pan-European business and tax advisory services; what would be complex or impossible for a country-specific advisor is straightforward for Lexidy. They answered in days what would take weeks for other firms.
D
D
17:31 24 Apr 22
I’ve dealt with hundreds of solicitors through business over the years but I must say Cristina and Lexidy Law are really something special. Responsiveness, proactiveness, knowledge and professionalism is, quite frankly, outstanding.M.
Signore Raffaele
Signore Raffaele
12:53 07 Sep 21
The service I have received from Hector has been extraordinary.He has helped me opening bank accounts, managing my NIE and setting up my company's branch in Spain.I am very grateful for the help and the exceptional treatment and management.I won't hesitate to contact him again for any other business I may need.
dawei2010
dawei2010
16:12 08 Apr 21
Our company engaged Lexidy Law Boutique to help pursue our monetary claim against a former business partner registered under Spanish jurisdiction. They provided a professional work and our claim got enforced even before it was expected. We will be happy to engage them anytime in the future for any civil law related matters and I can only recommend their services.
dk impprojects
dk impprojects
15:37 22 Feb 21
Lexidy law boutique services are very prompt and responsible, they created my business company in barcelona, spain. I received very good response from Maximiliano Agazzi for my residence permit issues. I am very much happy with Lexidy law boutique services.
Tom Elliott
Tom Elliott
11:44 18 Feb 21
Very helpful getting my business off the ground quickly and easily and affordably! Best of all, they speak English!
Dan Centinello
Dan Centinello
14:26 19 Nov 20
Let me start by saying that I normally do not write reviews - and I am often skeptical of the authenticity of the ones that are left. However, I feel like this law team has earned it and here's why...I am the type of person who will do endless research & contact several people before making a decision. I did the same when looking for a Spanish law firm that would be able to quickly handle my immigration matters and, most recently, help me with my leasing agreement for my apartment.They are extremely responsive (replying within a couple of hours of my messages) and even after office hours.Maximiliano, in particular, has been exceptional. He put a lot of effort to understand all the details of my situation so he can find the best solution.It was quickly evident that he understands that not all people have the same immigration situation and was going to tailor a solution specific to me.What impressed me most though was how he was thoughtful enough to make sure that his immigration solution did not impact my tax or business situation adversely. His focus on the big picture, while not missing the important small details is one of the main reasons why I felt compelled to write a review.Lastly, Max even made himself available during the time I was crossing the border, just in case I had any issues.With all this being said, I have worked with many lawyers in the past - many simply look for "a solution", but the great lawyers look for the "best solution". Everyone I have interacted with thus far at Lexidy seems to understand the latter. I feel very fortunate to have come across them in my research.I know how stressful it can be, especially when dealing with immigration issues. So, I hope this helps others out there that might be in the same situation I was in.
Michael Sandoval
Michael Sandoval
16:44 19 Oct 20
I have had the pleasure to work with a lot of Lexidy's departments. Working with Max Aggazi Paulet to achieve everything needed for my residency was incredible. he help endlessly until everything was accomplished. Soon after i began working with their Real estate department. It has been a journey and they have stuck with me every step of the way. They have gone beyond the scope of their duties to help my dreams of purchasing a property in Spain come to fruition. I would like to thank Alejandro Cano and Jordi Aranda for for everything. Last but not least through the entire Process I have had the absolute pleasure to work with Camila Broderson. She is a Gem. She has guided me in every step to work on opening my LLC in Spain and has also gone beyond the scope of her duties to assist and be available at any time. I plan to continue to work with team at Lexidy and would highly recommend them to everyone. Thank you Lexidy team for everything that you have done so far! I look forward to continuing our partnerships and friendships!
Swapnil Sai
Swapnil Sai
09:45 06 Jul 20
I feel compelled to write this review after my correspondence with the team at Lexidy Law Boutique. This is certainly a law firm with a difference which is devoted to its clients. They attended to all my needs and queries with utmost diligence and professionalism. A truly outstanding and accommodating team that would go out of its way to help its clients. They did more than just exceed my expectations. They have set up a service standard that I am afraid other firms may not be able to match! They have become my go-to legal advisors. My case was fraught with complications and they patiently unraveled those until I had clarity and peace of mind. They are a firm with a heart that I am deeply thankful to.
Petra Ahmann
Petra Ahmann
10:21 17 Jun 20
Lexidy assisted me with my residency visa in Spain, helped me set up a bank account, and attended appointments with me. Overall it was a smooth experience, and better priced than other firms.
Alexander Hohne
Alexander Hohne
18:44 15 Jun 20
I have had an amazing experience with Lexidy not only successfully obtaining my first two residency visa applications but also with the setting up of my two businesses. I can highly recommend this young and dynamic team.
Payam Agha
Payam Agha
13:18 25 May 20
I'm a non-EU Entrepreneur, and I'm in the process of setting up my business in Spain, and It's my pleasure to write a review for lexidy. The team are truly dedicated, they kept me informed and guided me as required.Camila diligently guided me through the process of setting up my project, and it's legal structure in Spain, and set up all the necessary tax and company registrations.Max's attention to detail and relentless determination ensured a favourable report issued by the Economic and Trade Commission of Spain in Sydney.If you are looking for a law firm in Spain, then I have no hesitation in recommending Lexidy for a fast, friendly and efficient service.
Duncan Campbell
Duncan Campbell
17:32 21 Nov 17
Fede and his team at Lequidy were incredibly responsive to an urgent legal issue that my business faced, and dealt with the problem efficiently outside of office hours. Highly recommended.
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