Company registration in Spain
Company registration in Spain
Spain is the second largest country in Western Europe. Due to the unique geographical location, Spain is very attractive for its business opportunities to the foreign investors. The country has highly developed economy and stable political situation that help to ensure and maintain successful investments in Spain.
So, why start business and register company in Spain? What are the advantages of starting a business in Spain? It does not matter if you are setting up a new company from zero in Spain or looking for opportunities in expanding your own existing business, Spain is an attractive country for the foreigners in both ways.
Reasons to open company in Spain
European Union membership and political stability
It is useful to have an operating company in Spain because the country belongs to EU. Free movement of goods, capital, services and labour opens for the foreign investors wide business opportunities for their business development and growth. In addition, Spain is an active member of NATO alliance. A stable country‘s political situation and diplomatic relations guarantee development opportunities for companies doing business in Spain, and reduces the risk of potential conflicts and disagreements with other countries.
Geographic location and climate
Spain has a perfect location for any business wishing to develop in Western Europe. Spain has access to the Atlantic Ocean and the Mediterranean Sea with numerous of large and good seaports. The predominantly Mediterranean climate with mild witners and hot and dry summers makes the country very attractive for the visitors, potential customers and business investors. Also, Spain is full of business opportunities in various different locations for starting a business in Spain – starting from the capital Madrid to Las Palmas or Valencia. According to the World Bank, doing business in Spain is easiest in the cities like Madrid, Valencia, Barcelona, Las Palmas. The aggregate ranking on the ease of setting up a business in Spain is based on 4 indicators: starting a business, dealing with construction permits, getting electricity and registering property.
Since joining the Eurozone, economic growth in Spain has been well above the EU average. For the past several years, the country has experienced one of the strongest rates of GDP growth in EU. Also, the Spanish tourism industry has grown to be the second largest in the world. According to the World Bank, Spain‘s economy is the ninth largest worldwide and the fifth largest in Europe. Therefore, doing business in Spain may be very advantageous and profitable for the new market players – foreign investors.
Business development opportunities
Spain can offer many developing benefits for new and profitable businesses like low labour an transport costs. Being a member of EU, country benefits from he transit of goods within EU without unnecessary formalities, including exchange rate fluctuations and transaction costs. Also, EU is very generous towards Spain with its structural and cohesion funds. Moreover, Spanish Government offers various incentives and flexible policies for developing businesses like creating a welcoming environment for foreign investments.
Without the above mentioned benefits of setting up a business in Spain, there still might be many questions on how to start a business and register company in Spain, what are the requirements and legal aspects of the registration process of the company. So, besides the advantages of having a company in Spain that you are already familiar with, we are ready to share some good tips and valuable information on how to start setting up a company in Spain and how does the registration process looks like.
What can we offer for you?
Our company‘s aim is to make the company formation in Spain much easier and help you to register company as smooth as possible! If you are interested in doing business in Spain, we will assist you with your business establishment here by providing a full package of company registration services that would be even possible without your personal presence in the office. By choosing our services for your company registration in Spain, we will help you to save the most valuable things for you – your time and money.
Many entrepreneurs are seeking to expand and develop their business by entering new markets. And in order to optimize taxes they usually choose to open company in one of the European Union countries. So, if you are interested in having a company abroad and would like to register company in one of the countries in EU, it would be advisable to think about company registration in one of the most attractive countries for business opportunities – Spain. As you already know, there are many reasons for choosing Spain as an attractive country in order to register company for your business. Maybe we will not have all the answers to the question how to do business in Spain but we will definitely do our best in order to help you to start a new business or expand the existing one. Moreover, if you want to open company in Spain, the whole procedure might be much easier and even more attractive with the professional consultancy!
The process of company registration in Spain has several steps. But first of all, you should decide which legal form of the company is the most suitable for doing business in Spain. Also, you should decide if you are interested in setting up a company from zero (new company) or you want to buy an already established business that is for sale (i.e. business for sale). Cost of the company is also related to the type of the company that you choose to buy or establish. So, for your own convenience, our company may accordingly offer you to buy:
A new from zero established company – it may have your prefered company name and all the necessary internal documentation package prepared (i.e. new company registration and business license if needed);
An enterprise that has been already established but due to some reasons no business activity has been executed;
An enterprise that has been already established and has been operating for a while but due to some reasons it is has no business activity at the moment;
A running business for sale that is operating now. As this type of company has turnoever, employees, etc., therefore, if you decide to buy this type of company – steady revenue and a verified business model is ensured. Also, it is important to emphasize that by buying this type of company, it eases you the procedure of getting residence permit in Spain and ensures you unrestricted travelling through all the Schengen area in EU.
If you need some professional consultancy on how to choose the best company according to your needs and what are the cost and advantages of setting up a business in Spain, you are always welcome to contact our office. Our team is always ready to provide some consultancy for you on legal questions of starting a business in Spain. Our aim is to ease the procedure for you of doing business in Spain.
The company registration procedure
Before the incorporation of a company in the Spanish Republic, the foreigners as well as living permanently having the interest (the establishment of the company, the purchase of real estate and other activity) in Spain, must obtain an identification number NIE (Número de Identidad de Extranjero).
The private limited company is the most popular form of the company in the Kingdom of Spain used for carrying out most of the activities. The procedure of opening the company begins with checking by the state competent authority whether the selected name of the company meets the requirements. The company will acquire company tax payer identification number (C.I.F) at the tax office. The incorporation of the company requires a minimum share capital of 3,000 euros. Founders have to open a bank account and 3000 euros to be paid to the bank account as share capital. Before going to the bank and the notary office, the business plan of a newly established company has to be created to establish what activity (number of planed jobs, amount of money to be invested in the business) the founders will carry out and the company’s articles of association has to be prepared. After all of the said steps, it is necessary to go to a notary to notarize all documents (articles of association, various forms, shareholders’ resolutions, and so on.). After all company documents are notarized, the company is registered in the National Register of Companies. If all documents are consistent with the requirements, the registration of a new company takes about 40 calendar days.
All major decisions are taken by the general meeting of shareholders where the Director who supervises the compliance with the Articles of Association is appointed.
After the company begins its activity it is necessary to prepare all the documents required for the general meeting of shareholders, to adopt decisions concerning the company’s activities and internal procedures and concerning representation the company in relation to other companies or legal entities.
Necessary documents for the company formation in Spain:
⦁ Passport (copy);
⦁ In case of the company incorporation in the name of a client (when setting up a business by the authorized person) – power of attorney;
⦁ Official documents must be legalized or apostilized.
Our services when incorporating a company include
We are always more than happy whenever we can helo you and assist in starting a business in Spain. We really know how hard it is to enter a new market and that you need only the best support and most professional and honest consultancy at the beginning. Therefore, our company is always ready to help you to find new business opportunities in new markets. If you want to setup things in a right way at the very first time when starting a business in Spain, then we are ready to help you with:
⦁ Registration of the name of a newly registered company;
⦁ Preparation of the articles of association;
⦁ Preparation of documents necessary to obtain the taxpayer code;
⦁ Assistance in preparing a business plan;
⦁ Assistance in opening a bank account (a person must come personally to open a bank account);
⦁ Preparation of all necessary documents to be certified by a notary;
⦁ Virtual address (if necessary);
⦁ Accompanying of a client to various institutions;
⦁ If necessary, representation in the institutions by power of attorney (with the exception of opening a bank account, in this case, the person performing this action has to come personally to the bank).
f you are interested in more detailed information – how to start the registration process, how much time and how much cost the whole company formation process will take, below there are listed some of the tips that you need to know about the successful company formation in Spain:
1. Applying for a certificate that is issued by the Central Commercial Registry (Registro Mercantil Central) in order to confirm that the company name that you prefer is not already registered in Spain.
2. Applying for Company Tax Identification code (C.I.F.) at the tax office (Delegacion de Hacienda).
3. Making a deposit for the company‘s capital in he bank account. The amount of the capital depends upon the type of the legal form of the company.
4. The founding partners of the company should sign the constitution deed for the business before the notary in Spain. The previous steps (name certification, the C.I.F. and bank receipt) must be executed before the notary.
5. Paying the transfer tax at the Tax Office of the province where the company was established. The transfer tax is 1% of the company capital share.
6. Registering the company at the Corporate Registry. It is required to have the deed of incorporation and the transfer tax to be paid.
7. A formal declaration must be filled before the Spanish Tax Office (Delegacion de Hacienda) in order to start the company‘ activity. It contains the tax system under which the company will be operating.
8. Entering Tax Office (Delegacion de Hacienda), registration of the company at the Social Security General Treasureship, joining Autonomous worker‘s special system, etc. – all these and much more steps must be executed before starting you company‘s activity in Spain.
As we fully understand the value of your time and money, our professional team is ready to help you with all these steps! Even while you are abroad! We value our clients, so we want to simplify the whole process. These are the steps and tips that should be followed if you want to ease of doing business in Spain – choose our services:
⦁ First of all, the client should send us the required documents and information – contact details (copy of passport, your email, address, telephone number) by email [email protected]
⦁ Then we prepare the contract.
⦁ The client pays an advance payment of 50% of total amount of our services in order to initiate the process of the company registration.
⦁ Our office prepares all the necessary documents for the client to sign and we send them by email to the client
⦁ The client should print out and sign (name, surname and signature) all the documents that has been sent to him according to the instructions provided. All the signed documents must be sent by a fast post courier.
⦁ After all the signed documents are received, we arrange and prepare a full package of documents of the company registration in Spain.
⦁ After all the documentation is done, we send to the client a scanned company registration in Spain certificate – as the confirmation. Therefore, the client has to pay the remaining payment – 50% of total amount.
⦁ Finally, all the package of the documents is sent to the client by express courier.
The whole procedure of company formation in Spain usually takes up to one month. As our aim is to satisfy our clients, therefore, we do our best in order to meet our clients‘ expectations.
If you still feel that you need some more detailed information on how to open company in Spain and how to choose and buy the most suitable company according to your needs, also how much time and how much money the whole procedure will take, we are always ready to help you and provide all the necessary information in all the steps of company registration procedure. So, you are always welcome to write an online message or e-mail to our team because we believe that more you give to the professional‘s hands – more ease of doing business in Spain!