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Company Formation in Spain

Set your business up for success

Starting a company in Spain

Take the first step towards realizing your entrepreneurial dreams by incorporating a company in Spain and turning your business idea into a thriving reality!

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To request a free consultation case, please provide us with your contact details below and we will contact you via email or phone.

How can a lawyer help me?

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. 

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 can help you from the company registration or services relating to investments to expert guidance regarding the Spanish real estate market.

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

What Our Clients Are Saying

Don’t try to go through the Company Formation process on your own. Seek the help of an experienced corporate lawyer to increase your chances of success and make the process as smooth and stress-free as possible.

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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.

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.¨

 

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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

Héctor Lopez Vazquez

Head of Corporate Department
Madeleine Cadwell

Madeleine Cadwell

Paralegal
Marta Ametller

Marta Ametller

Paralegal
Samuel Ortega Vega

Samuel Ortega Vega

Lawyer
Francesca Coluccio

Francesca Coluccio

Trainee
Luisa Rivera

Luisa Rivera

Trainee

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