Anyone can start a company or venture in Spain. The only requirement is to be a legal resident.
- If you are from any European Union country (EU citizen), the procedure is generally simple. All you have to do is get your NIE and the EU registration certificate and you will be able to incorporate your company or partnership.
- If you are not an EU citizen and do not have a residence permit, you will need to first resolve your residential status in the country before you can move on to open your business.
In Spain there are different corporate structures from a legal point of view. Each of them has its own characteristics, and understanding their different purposes is crucial to know which one is ideal for you. Among the different types of companies that can be incorporated in Spain, the most popular are the following:
Limited Liability Company (SL)
It is the most popular business structure in the territory, due to its flexibility in the incorporation process, requiring a minimum capital investment of €3,000.
One of its main advantages is that its liability will be limited to the capital investment made. For example, if you have invested the initial capital of €3,000, this is the maximum amount that will be required of you personally as a founder in the event of, for example, indebtedness.
In this case you do not pay income tax, but corporate income tax. Which is equivalent to 25% of the company’s profits. It is also necessary to file a VAT return.
Public limited company
A corporation is the legal structure reserved for larger companies trading by shares. They are characterized by a much stronger structure and require €60,000 for incorporation.
The advantage of corporations is that they make it possible to raise external financing, since the company’s shares can be purchased on the stock exchange.
Branch
If you already have your own company in any other country and you want to expand it in Spain, you can open a branch office. It will offer you the possibility to expand into a new market.
If you want to create a branch for your company in the Spanish territory you will have to present a power of attorney and a copy of the public deed of incorporation of the company. If your country’s commercial law provides for it, you must also present a certificate of good standing.
In this particular case, if you yourself are the one who opens and manages the branch in Spanish territory, you must be resident in the country.
If you are contemplating the idea of expanding and incorporating a company in Spain, contact us so we can analyze your case and assist you.
