Job Advice and Coworking

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

11 Oct 2024

Aticco Lab
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 in Between ProceduresWe have put together some key information for those considering launching their own business in 2024. Here are the essential steps and requirements needed to incorporate a company in Spain.

1. 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 form an Sole Proprietorship Limited Liability Company (SLU)which protects you against possible tax risks beyond the capital contributed.

2. Obtain negative certification of the name

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

3. Drafting the corporate bylaws

The articles of association define how the company will operate. These documents should include information on the capital stockthe internal 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.

4. Open a bank account and deposit the capital stock.

Depending on the chosen legal form, a deposit of capital stock in a bank account in the company's name. For a Limited Partnership3,000, the minimum capital is €3,000, while for a Public Limited 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 constitution.

5. 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 model 036 The process can be carried out electronically with the Tax Agency.

6. Signing of the public deed before a notary public

If the company has more than one partner, it is compulsory to go to a 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 incorporation, the certificate of the deposit of the capital stock and the identity documents of the partners.

7. 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 business relationships with other entities.

8. Registration in the Economic Activities Tax (IAE).

The Tax on Economic Activities (IAE) is mandatory 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 Regime for Self-Employed Workers (RETA) as a self-employed company.

9. Obtain an electronic certificate

Although it is not a prerequisite for the creation of the company, it is important to have a electronic certificate is highly recommended, as 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 in Between Proceduresoffer a comprehensive service to guide you in the creation of your company, making sure that you comply with all legal and fiscal requirements. Agenda here a consultation to start your business successfully!
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Frequently Asked Questions on how to create and set up a company in Spain

  • What happens if the managing partner is not resident in Spain?

    Nothing happens, the important thing is that all partners must have a NIF (NIE) assigned. You must appoint a Legal Representative who has residence in Spain.

  • Can I open a bank account in a digital bank?

    For the personal account from which the Social Security contribution will be deducted, there are some banks if they are linked to the entity. However, for the business account, a bank with a physical location is not recommended.

  • What if I don't have an address, how can I do it?

    It is possible to contract a »Virtual Office». In Aticco, we offer this type of service to be able to access an address in Spanish territory.

  • Can I choose any name (corporate name) to create a company?

    Yes, as long as it is available in the RM. For foreign partnerships where the only partner is this company, the same name of this foreign company cannot be used.

  • Is it possible to change the name of a company already incorporated?

    Yes, a new corporate name must be requested and the modification must be made in the deeds and the commercial registry.

  • What is the minimum capital required to set up a company?

    From 1 euro. But it is recommended to do it with 3,000 euros. If I make a company with 1 euro and I wish to sell it or liquidate it, I must first contribute the other 2,999 euros to be able to do so.

  • How many partners can a partnership have?

    From 1 to 50 partners. In case of a single partner, it would be a Limited Partnership with a single capitalist partner and administrator.

  • How many directors can a company have?

    In Spain, a Limited Liability Company (SL) may have one (Sole) or more managing partners (joint or several).

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