Guide to Company Incorporation in Spain

1. What is the minimum share capital for a Spanish S.L. (Limited Liability Company)?
In Spain, as in many other countries the most common form of business is the Limited Liability Company, or the SL(Sociedad Limitada). It requires less documentation as a Joint Stock Company, the incorporation procedure is not very complex, and the minimum capital is quite low, approximately 3.000 EUR. The amount must be fully paid in at the time of formation.

2. What is the minimum share capital for a Spanish S.A.(Joint Stock Company)?
In order to register a Joint Stock Company, the shareholders need to provide a minimum capital of 15.000 EUR which must be made in the form of money, goods or intellectual property.

3. Are there any special requirements for establishing a SL in Spain?
Most of the procedures for incorporating a Spanish Limited Liability Company are similar to other countries. However there are some minor differences. The name of the company must be verified and the shareholders must obtain a Company's Name Negative Certificate at the Registro Mercantil Central. The managers of the company are not required to obtain Spanish citizenship, or have a residence in the country. However the administrator that handles all company issues in Spain needs a work permit, if he resides in a non-EU member state. EU nationals do not need a work permit to work and live in Spain. However if they wish to remain more than three months they need to acquire European Community card to remain in Spain. The company is required to have a legal address, or at least a virtual office. Setting up the Limited Liability Company can be done by a legal representative authorized through power of attorney, and the presence of the founders is not mandatory. However the procedure of incorporating a Spanish Limited Liability company means the founders will have to open a bank account in which to deposit the minimum capital. Some banks may require the presence of the account titular in order for the bank to ensure of its existence. This possibility needs to be taken into consideration before engaging in this process.

4. How can I register for VAT in Spain?
There are many reasons for which a company benefits from VAT registration, including claiming VAT refund, importing goods etc. Also for companies that sell products or services VAT registration is mandatory. The process of registration can be done by the company legal representative. An application must be sent to the Tax Authorities along with the name certificate of the company, the bank deed certifying the minimum capital has been deposited, the registered address of the company and identification card, or power of attorney of the representative. Usually the VAT number is issued in a short time period.

5. How can I open a bank account in Spain?
Any company engaging in commercial activities needs to open a bank account. Some Spanish banks require presence of the bank titular to ensure of its existence. However Spanish banks have branches throughout the world, It is possible for a foreign entrepreneur to open a bank account at a branch of a Spanish bank in his or her country and transfer all the information at the bank's head office. The bank usually requires a copy of the deed of incorporation of the company, legal address, information on the shareholders and company type. Managing the Spanish bank account can easily be done through internet banking, as most Spanish banks provide many personalized services especially for business companies.

6. How can I recruit personnel in Spain?
Spain offers a highly productive and skilled workforce. A newly established company that needs to hire employees may do so by browsing job websites, create user accounts, post job announcements and select the most suitable candidates. Also companies may hire recruitment agencies that offer focused attention and provide best suited solutions for company's posts.

7. What is the average salary in Spain?
Spain is one of the most powerful countries in Europe economically speaking, having a high quality of life. Employees are well trained, and benefit from a great social security system. Also the average salary in Spain reaches over 2500 EUR.

8. What is the overall economical situation in Spain?
Spain is recognized as a powerful economy, playing an important role in global industrialization as well as being responsible for the creation of plenty workplaces. During the last decades the states' economy has recorded a growth of almost 4% every year. However the global economic crisis has left its mark on the country, but the government has taken measures to improve the problematic business sectors, and since the beginning of 2010 the positive results begun to appear. International trade and tourism are two of the most dynamic business sectors of Spain, the country being highly service-oriented. Foreign investment in Spain is viewed as an asset, efforts being made to diversify it and also increase current offerings.