Set up a Company in Spain

Entrepreneurs in Spain find a welcoming environment with non-discriminatory treatment towards foreign investors. Due to EU membership, foreign investors form EU member states find the process of incorporating a Spanish company much easier.

Preliminary activities prior to registering public and private limited liability companies in Spain
Entrepreneurs must find a unique company name, prior to registration, and certify the uniqueness of the proposed name at the Mercantile Register. This procedure is done through submission of the corresponding form, directly at the office of the Central Mercantile Registry, or via e-mail. Also before registration the founders must open a bank account and deposit capital in order to obtain a deposit certificate. The documents of incorporation must be notarized. It must contain the identity of the Spanish company shareholders, or members, the disbursement made by each shareholder and the shares subscribed by each, the administrative body that will manage the company, and the board of directors. The founders must obtain the Tax Identification Code (Codigo de Identificacion Fiscal, CIF) from the Delegacion Provincial de la Agencia Estatal de la Administracion Tributaria. An Asset Transfer Tax and Legal Documented Act Tax to the local tax authority within 30 days of the date on which the deed of incorporation was granted.

Registering public and private limited liability companies in Spain
The relevant documentation on the company in Spain, along with the incorporation deed must be submitted with the Mercantile Registry of the place where the company has the legal address in maximum 2 months of the date it was granted. In order for the registration process to begin, the founders must proved proof of Asset Transfer and payment of the Legal Documented Acts Tax and tax identification number. Once the Spanish company has been issued a registration certificate, the incorporation of the company in Spain is published in the Official Journal of the Mercantile Registry. Also upon registration the company becomes a legal entity in its own right.

Legalization of the company books in Spain
After receiving the certificate of registration the founders of limited companies must legalize the corporate books, such as book register of members, or minutes book. Only corporate and accounting books must be legalized. The process is done through an application at the Commercial registry, electronically or in person.

Obtaining a municipal license to open business premises in Spain
Obtaining a municipal license to open business premises depends on the type of license needed and on the company's business activities. This is done through an application at the Departamento de Urbanismo del Ayutamiento, and may take up to 15 days.

Filling for social security
After registration, the entrepreneurs must register all the workers with the local general treasury of social security at the Tesoreria General de la Seguridad Social. The founders must submit the corresponding filled form, a copy of the deed of incorporation, a photocopy of the applicant's national identity, or power of attorney, the company tax identification number. Registering for social security must be done prior to commencement of business activities.

Set up a Spanish company from abroad
The Spanish government encourages foreign investment guaranteeing an equal treatment, although not preferential, offering many incentives in most domains. Foreign investors may establish companies in Spain using an assignee with a power of attorney to establish the company. However a legal address in Spain is required.

How long does it take to establish a Spanish company?
Obtaining the certificate of name uniqueness may take up to 4 days, while most of the procedures are completed the same day as the application, especially if they are done via internet. However filing the deed of incorporation of the company for registration may take up to 15 days, same as legalizing the company books and obtaining a municipal license to commence business activities. A Spanish company may take up to three months to be established, but depending on the business type, it may take less.