How to create and set up a company in Spain? Steps, requirements and tips for 2024

The process of creating a company in Spain has seen a notable increase in recent years. According to data from the National Statistics Institute (INE), in 2021, the creation of new commercial companies increased by 27.7%, with more than 101,000 new companies registered, the highest number since 2008. This boom reflects a growing optimism in the business landscape, driven by laws such as the 'Crea y Crece,' which seeks to facilitate the creation of companies in Spain.

Thanks to our partners at Entre Trámiteswe have gathered key information for those considering launching their own business in 2024. Below, we detail the essential steps and requirements needed to incorporate a company in Spain.

Choosing the legal form

The first step is to decide the legal form of your company. The choice will depend on the type of activity, the number of partners, the legal liability you are willing to assume, and the scope of the project. The most common options are:

• Self-employedFor those who are self-employed.
• Limited Partnership (SL)Ideal for small and medium-sized companies with several partners.
• Corporations (SA)Recommended for large companies seeking to increase their capital.

If you do not have partners and you prefer to limit your liability, you can set up a Sole Proprietorship Limited Company (SLU)which protects you against possible tax risks beyond the capital contributed.

Obtain negative name certification

This document certifies that the name you want for your company is not being used by another entity. It is requested at the Central Mercantile Registry and can be processed either in person or online. Having an exclusive name for your company is a crucial aspect, as it ensures that there will be no legal conflicts in the future.

Drafting the corporate bylaws

The Articles of Incorporation define how the company will operate. These documents should include information on the capital stockcapital, the internal organization organization of the company, and the rights and obligations of the partners. Although they can be modified over time, it is advisable to draft them precisely from the beginning to avoid misunderstandings.

Opening a bank account and depositing the capital stock

Depending on the legal form chosen, a deposit of the following is required capital stock in a bank account in the company's name. For a Limited Companythe minimum capital is 3,000 euros, whereas for a Limited Liability Companythe minimum capital is 60.000 €. The bank will provide you with a certificate that the deposit has been made, which is necessary to formalize the incorporation.

Requesting a Tax Identification Number (NIF)

The Tax Identification Number (NIF) is essential for all fiscal and legal operations of the company, including tax filing. To obtain it, you must fill in the form 036 at the Tax Agency, which can be done electronically.

Signing of the public deed before a notary public

If the company has more than one partner, it is obligatory to go to a notary notary to sign the public deed of incorporation. Among the documents required for this step are the negative certification of the name, the articles of association, the certificate of the deposit of the share capital and the identity documents of the partners.

Registration in the Mercantile Registry

Register the company in the Commercial Registry is a crucial step to obtain the legal personality of the company. All companies must register in the Registry of the province in which they have their registered office. This registration will allow you to operate legally and formalize commercial relations with other entities.

Registration in the Economic Activities Tax (IAE).

The Tax on Economic Activities (IAE) is compulsory for all companies that carry out commercial, professional or artistic activities in Spain. In addition, if you are the administrator of the company, you must register in the Special Scheme for Self-Employed Workers (RETA) as a corporate self-employed person.

Obtaining an electronic certificate

Although it is not a prerequisite for the creation of the company, having an electronic certificate is electronic certificate is highly recommended, since it will facilitate many administrative procedures, allowing you to carry them out telematically and saving time.

Setting up a company in Spain in 2024 involves a series of administrative and legal steps, from choosing the legal form to registering the company in the Commercial Registry. Having the support of a specialized advisor can make this process much easier. 

Our partners of Entre Trámitesoffer a comprehensive service to guide you in the creation of your company, making sure that you comply with all legal and fiscal requirements. Schedule an appointment here a consultation to start your business successfully!