OPENING YOUR COMPANY IN SPAIN
The company formation procedure in Spain can be quite complicated for foreign investors due to all the steps it requires. With a vast experience, LN ABOGADOS LAWYERS can assist you with the preparation of all the documents and can help you file them with the Companies Registration Office.
Spain provides a set of competitive advantages which can make it a great business destination in European Union. It represents one of the most developed economies of Europe and one of the leading markets at a global level as well.
In Spain, there are several types of companies:
– First, Private Limited Society
Private Limited Society is the most common type of society in Spain, in special by the small and medium-sized enterprises because the responsibility is limited to the invested capital, so it has not to answer for the debts of the business with the personal heritage of the members.
The minimum capital to invest is 3.000€, in capital or in kind, always being the amount agreed among members. The minimum of members is one .
–Second, Public Limited Company
This type of company has the same features as the Private Limited Society in relation to responsibility, number of members and tax obligations.
The differences are, from one part, the minimum capital to invest: in this case are 60.000€. From the other part, the management of the company is also different: this kind of society is thought to smaller businesses, in which the partition is among a few members, while in the public limited society the members can sell their shares freely. Finally, in relation to the constitution of the company, the public limited society is stricter than the private one.
– Third, New Business Limited Company
The New Business Limited Company is a type of company very similar to the private limited society. But it has a maximum of 5 members, and they must be natural people not legal ones ; the administrator must be a member imperatively.
In this case, the minimum capital is also 3.000€ but there is also a maximum capital of 120.000€.
If you want to set up a limited company in Spain, there is a defined path to follow. We will go into more detail shortly, but the process works like this:
- Apply for your identification number in Spain(NIE)
- Register the company name with the Mercantile Registry (Registro Mercantil Central or RMC)
- Get a company tax identification number (CIF)
- Open a business bank account in Spain
- Sign the deed of incorporation
- Register the company
- Register for social security
Non-EU citizens moving to Spain to start a business will need a valid work permit to do so. To get a work permit, you will need to apply to the Spanish embassy in your home country or contact with LN ABOGADOS LAWYERS.
First of all, is necessary to provide evidence that you have enough capital to invest in your business and for living in Spain. You may also be required to submit a business plan and proof of your skills and experience. The Spanish government can ask you to provide evidence on how your company could create jobs for workers in Spain.
Work permits must be renewed every year, but after five years you can instead apply for permanent resident status in Spain. This removes the need to get a work permit in the future.
For details about the business incorporation process, you may contact LN ABOGADOS LAWYERS, we are happy to help you.