COMPANY REGISTRATION IN SPAIN

So, how to open a company in Spain? What is the price of opening a company in Madrid, Barcelona, ​​Valencia, and other cities in Spain?

How to open your own business in Spain?
But what are the advantages of registering an LLC or an IP in Spain?

When immigrating to Spain for business, it is important to provide the authorities with a clear business plan that reflects value and innovation. So, what is the best way to do business in Spain? What is better than LLC for business in Spain?

IP

One of the forms of business immigration to Spain is Individual Entrepreneurship (autonomo). Let’s consider in more detail the advantages and disadvantages of running a business.

*Ukrainians can apply for temporary residence status in connection with Russian aggression before opening a private residence in Spain.

What is required to register an IP?

1. Provide a draft business plan and demonstrate the availability of finances for
2. Get a tax number (NIE).
3. Open a bank account before registration.
4. Registration at the Treasury.
5. Registration in the social insurance system (RETA).

The advantages of IP registration include:

• No need to contribute authorized capital;
• Minimal administrative costs
• The best option for running a business with minimal deposits.

Disadvantages of doing business as a sole trader in Spain:

• The entrepreneur bears full responsibility, there is no difference between business assets and personal assets.
• Responsible for all debts received as a result of conducting business activities
• Quite large percentages of taxes may be applied depending on the income received (from 19% – 45%)

Let’s consider other options for doing business in Spain:

Register an individual entrepreneur with limited liability – Emprededor de Limitada – the main difference from an IP (autonomo) is limited liability, which does not apply to housing. There is a need to register in the commercial register.

Register a Limited Liability Company — Sociedad de Responsabilidad Limitada, S.R.L./S.L. — is a legal entity that has a charter capital of at least 3,000 euros. This is the most popular form of business.

Registering a Joint Stock Company – Sociedad Anónima, SA is a more expensive form, unlike an S.R.L. designed for running large companies. The minimum authorized capital is – 60,101.21, €, at least 25% must be paid; the minimum number of shareholders is one or more.

Register a New Limited Liability Company – Sociedad Limitada Nueva Empresa – suitable for small and medium-sized companies, founders can only be natural persons up to 5 people, a limited number of types of activities.

There are also foreign forms of doing business: limited liability company with succession, commodity company, Gro Madan society, cooperative society, and others.

How to register a company (S.L) in Spain?

Company registration in Spain takes 2 to 6 weeks on average. It is important to remember that most activities require appropriate licenses.

Procedure for opening a business in Spain:

1. Get a foreign national identification number (NIE)
2. Choose an official name for the company and submit an application to the Central Trade Register for reservation.
3. To approve the business plan in the Spanish Chamber of Commerce.
4. Open a bank account
5. Preparation of documents for company registration and their notarization.
6. Registration of the company in the Trade Register
7. Registration of the company with the tax authorities and issuance of a tax number (N.I.F.).
8. Payment of tax on authorized capital

Is it possible to register a business online?

In Spain, it is possible to register a business online. For this purpose, a special system has been developed – CIRCE for registration, which allows you to save your time. All that is necessary is to fill out the Unified electronic document – DUE by entering your documents. Then you need to send it with an electronic signature (if available) or with the help of municipal intermediaries who will help complete the process of submitting documents

How do I get a NIE (Spanish Identification Number)? What is it needed for?

NIE is a foreigner’s identification number, which is required for all official procedures and operations (such as setting up a business, buying real estate, opening a bank account.)

There are 2 ways to get a NIE:

1. Prepare documents to be submitted to the Spanish embassy in your country
2. Submit the documents to the local police office, Oficina de Extranjeros in Spain.

What documents must be submitted:

• Application;
• Copy of foreign passport;
• A document that confirms the rationale for issuing a foreigner’s identification number;
• Receipt for payment of state duty;
• Power of attorney (if necessary)

Importantly! It is not possible to obtain an ID number online, but it is possible to submit a power of attorney on your behalf.

What is the cost of registering a company in Spain?

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The application review period is 5 days. (maybe more)

NIE is indefinite, but if received in paper form from the police, the term is 90 days.