Company formation in Spain

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Starting a company in Spain offers a clear structure and flexible incorporation options for both local and international investors. Spanish corporate laws make company registration straightforward, allowing full operation within the European Union and benefiting from a transparent legal and tax system. With digital registration tools and government initiatives, you can quickly start your business — often without leaving your home country.

Spain

What are the benefits of company formation in Spain?

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    Full Access to the EU Market

    Register a company in Spain to gain direct access to over 500 million EU consumers. Combine seamless company registration in Spain with the ability to trade, hire employees, and own assets across Europe.

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    Fast and Efficient Registration

    We use modern tools such as CIRCE (the Spanish Business Registration System) and Entrepreneur Service Points to register companies in Spain, making the process quick. Digital procedures mean that your registration confirmation can be ready within 2–4 weeks.

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    Low Capital Requirements

    Starting a business in Spain requires only a minimum capital of 1 euro (for an SL company). This allows entrepreneurs of all scales to start with minimal initial investment.

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    Clear Tax Benefits

    Benefit from a reduced corporate tax rate of 10% for new companies in the first two years and a simplified process for tax registration in Spain.

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    Flexible Business Structures

    Choose between a Limited Liability Company (SL), a Public Limited Company (SA), a sole proprietorship, or a branch/subsidiary. Legarithm helps you select and register the right company for your goals.

Step-by-Step Guide to Registering a Company in Spain

Step 01

Document Collection

We collect copies of passports, NIE/NIF identification numbers, proof of address, and, if needed, a power of attorney. For foreign shareholders, we prepare a certified certificate of good standing (with apostille and sworn translation). This preparation typically takes 1–3 days.

Step 02

Obtaining Identification Numbers (NIE/NIF)

We assist all shareholders and directors in obtaining an NIE (foreign identification number) or NIF (company tax number) through the Spanish consulate or tax agency. This stage typically takes 2–7 days.

Step 03

Company Name Reservation

We submit up to 5 company name options to the Central Commercial Registry. The approval of the chosen name is usually obtained within 24 hours and is valid for 6 months.

Step 04

Opening a Business Bank Account and Capital Deposit

We arrange a meeting at a Spanish bank to open a corporate account. After depositing the minimum capital (1 euro for an SL), we obtain the bank confirmation. This step typically takes 1–2 days.

Step 05

Preparation and Notarization of the Articles of Association

We prepare the Articles of Association and arrange a meeting with a Spanish notary for signing. All shareholders participate (remotely via power of attorney if needed). This process typically takes 1–2 days.

Step 06

Tax and Social Security Registration

We submit form 036 to the Spanish Tax Agency to obtain the company’s temporary tax number (CIF/NIF). For companies that plan to hire employees, we arrange registration with the social security system. This step typically takes 1–2 days.

Step 07

Registration with the Commercial Registry

We submit all signed documents and supporting paperwork to the Commercial Registry. When using standard articles of association, company registration in Spain is processed via the online CIRCE system within 6 working hours. The final registration and issuance of the business registration number and certificate may take 2 to 7 days.

Step 08

Processing Additional Registrations

We handle VAT registration, entry into the EU VAT Information Exchange System (VIES) for cross-border operations, and applying for local municipal business licenses depending on your business activity. This can take 1 to 5 days, depending on the license type and region.

Step 09

Post-Registration Support: Ongoing Compliance

We provide accounting, payroll, and compliance services, ensuring that your company submits all required annual declarations, accounting records, and tax reports in accordance with the Spanish company registry requirements.

Completing these steps typically allows you to open a business in Spain within 2–4 weeks, with full confirmation in the Spanish company registry and all compliance certificates.

  • Step 01

    Document Collection

    We collect copies of passports, NIE/NIF identification numbers, proof of address, and, if needed, a power of attorney. For foreign shareholders, we prepare a certified certificate of good standing (with apostille and sworn translation). This preparation typically takes 1–3 days.

  • Step 02

    Obtaining Identification Numbers (NIE/NIF)

    We assist all shareholders and directors in obtaining an NIE (foreign identification number) or NIF (company tax number) through the Spanish consulate or tax agency. This stage typically takes 2–7 days.

  • Step 03

    Company Name Reservation

    We submit up to 5 company name options to the Central Commercial Registry. The approval of the chosen name is usually obtained within 24 hours and is valid for 6 months.

  • Step 04

    Opening a Business Bank Account and Capital Deposit

    We arrange a meeting at a Spanish bank to open a corporate account. After depositing the minimum capital (1 euro for an SL), we obtain the bank confirmation. This step typically takes 1–2 days.

  • Step 05

    Preparation and Notarization of the Articles of Association

    We prepare the Articles of Association and arrange a meeting with a Spanish notary for signing. All shareholders participate (remotely via power of attorney if needed). This process typically takes 1–2 days.

  • Step 06

    Tax and Social Security Registration

    We submit form 036 to the Spanish Tax Agency to obtain the company’s temporary tax number (CIF/NIF). For companies that plan to hire employees, we arrange registration with the social security system. This step typically takes 1–2 days.

  • Step 07

    Registration with the Commercial Registry

    We submit all signed documents and supporting paperwork to the Commercial Registry. When using standard articles of association, company registration in Spain is processed via the online CIRCE system within 6 working hours. The final registration and issuance of the business registration number and certificate may take 2 to 7 days.

  • Step 08

    Processing Additional Registrations

    We handle VAT registration, entry into the EU VAT Information Exchange System (VIES) for cross-border operations, and applying for local municipal business licenses depending on your business activity. This can take 1 to 5 days, depending on the license type and region.

  • Step 09

    Post-Registration Support: Ongoing Compliance

    We provide accounting, payroll, and compliance services, ensuring that your company submits all required annual declarations, accounting records, and tax reports in accordance with the Spanish company registry requirements.

    Completing these steps typically allows you to open a business in Spain within 2–4 weeks, with full confirmation in the Spanish company registry and all compliance certificates.

Taxes and Reporting Requirements

Tax Type Rate Notes
Corporate Tax (Standard) 25% Applies to company profits
Corporate Tax (New Companies – 2 Years) 10% First two years for new companies (since 2022)
VAT (IVA) Standard Rate 21% For most goods/services
Reduced VAT Rate 10% or 4% For certain goods/services
VAT Registration Mandatory for trading Registration in VIES for cross-border EU operations
Personal Income Tax (for non-resident directors) Withholding applies Based on the director’s tax residency
Annual Tax Reporting Mandatory for all companies Quarterly and annual reports, even if not active

Frequently Asked Questions About Company Registration in Spain

Still have questions?

Can't find the answer to your question? Send us an email and we'll get back to you as soon as possible!
Is foreign ownership allowed in companies in Spain?

Yes, Spain allows 100% foreign ownership for both EU and non-EU citizens. Foreign individuals or legal entities can fully own a Spanish company and act as shareholders or directors, making Spain an attractive destination for international entrepreneurs.

What are the minimum capital requirements?

Starting a Sociedad Limitada (SL) company in Spain now requires only 1 euro of minimum capital. For a Sociedad Anónima (SA), the minimum is 60,000 euros, of which at least 25% must be paid at the time of registration. This flexibility supports both new businesses and larger investments.

Can I register a company in Spain remotely?

Yes, Spain supports remote company registration. You can register your business in Spain through a legal representative acting via a power of attorney, meaning you do not need to visit Spain in person. Many providers also offer virtual office addresses and digital document processing.

How to obtain a business registration number in Spain?

Your Spanish company registration number (CIF or NIF) is assigned during the registration process. This number serves as your official tax identification and is required for invoicing, entering contracts, and formal communication with Spanish authorities.

We Are Always Available

Our team ensures your business setup is smooth, efficient, and compliant with local laws. Contact us today to discuss your project.

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Arch. Makarios Av. III, No. 1-7, Mitsis Building 3, 3rd floor, Office 302, 1065 Nicosia

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228 Park Ave S, New York City, New York, 10003, USA

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