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8 Simple Steps to Starting a Business in Spain with a Limited Company

8 Simple Steps to Starting a Business in Spain with a Limited Company

Business

8 Simple Steps to Starting a Business in Spain with a Limited Company

8 Simple Steps to Starting a Business in Spain with a Limited Company

Thousands of expats move to Spain every year. If you are one of the brave that plans to start a business in Spain then you can do so by going self employed or setting up a limited company.

Our guide will delve into the details and steps involved in starting your business via a limited company, which will protect you from personal liability in case of bankruptcy.

1) Register an available company name  (certificación negativa de la denominación social)

Assuming that you already have your NIE number, the first step in getting started with your limited company formation in Spain is getting a no-name coincidence certificate from the Registro Mercantil (Mercantile Registry) that confirms that the company name you wish to register is not yet taken. You will be able to apply for five company name variations in your application. The cost is around 20 Euros and within 3 days you should receive your certificate by courier.

2) Get your provisional company tax identification code (CIF)

The next step is to apply for your tax identification code or company C.I.F. by completing the form 036 at the Hacienda (Tax Office).

3) Deposit the required €3,005.06 share capital

You will then need to deposit €3,005.06 into a Spanish bank account, which your company will use for corporate banking. The amount is the minimum authorized share capital for a Spanish S.L. limited company. The bank will issue you with a confirmation certificate. There is also the option to have the shareholders contribute assets to the company that will not require you to dispose of any funds.

4) Formal incorporation at the notary

Together with all the above you can then make an appointment at a notary to constitute your Spanish company and draft up the legal title deeds with you appointment as a company Director (administrador). If time is of essence, ensure that you visit a notary that can process the constitution electronically.

5) Register the company deeds at the local tax authority and Spanish Register of limited companies

You must then take your certified deeds to the local tax office AEAT and then the Registro Mercantil to be certified and registered, which should take around 14 days until you get back the certified original deeds.

7) Register for the definitive company tax identification code (CIF)

To complete the registration of your company, you must again visit the Hacienda (AEAT) to obtain your definitive company tax identification code (CIF).

8) Complete your company registration by signing up with the social security

In order to complete the registration and incorporation of your Spanish limited company, the company director will need to register as autonomo with the social security.

A number of these steps, if not all can be taken care of by professionals (a Spanish lawyer, a gestor, or a graduado social). If you are unsure about the procedure or not keen on tackling the Spanish bureaucracy by yourself, we suggest you make use of professional support.

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