Setting up a company in Spain is a process that, when well planned, can be completed within a reasonable timeframe and with controlled costs. However, choosing the right legal form and meeting all legal requirements are decisions that will have a lasting impact on the life of the company.
Limited Company vs Public Limited Company
The Sociedad de Responsabilidad Limitada (SL) remains the most widely used legal form in Spain, especially for SMEs and startups. It requires a minimum share capital of three thousand euros, offers management flexibility and limits partners’ liability to their contribution. The Sociedad Anonima (SA), with a minimum capital of sixty thousand euros, is more suitable for larger companies planning to attract external investment or list on the stock exchange.
The choice between the two forms depends on factors such as the number of partners, growth expectations, the need to attract investors and the sector of activity. In many cases, an SL incorporated quickly can be converted into an SA later when circumstances require it.
Steps for incorporation
The process begins with requesting a company name certificate from the Central Companies Registry, which confirms that the chosen name is not already in use. Next, a bank account is opened in the name of the company being formed and the minimum share capital is deposited.
The following step is signing the deed of incorporation before a notary, which includes the articles of association and the identity of the founding partners. Once the deed is granted, a provisional Tax Identification Number is requested and the company is registered at the Companies Registry in the corresponding province.
Costs and timelines
Total incorporation costs typically range between one thousand five hundred and three thousand euros, including notary fees, registry fees, administrative services and charges. The average timeline, using available electronic procedures, is between one and three weeks. Express incorporation through the CIRCE system can significantly reduce these timelines for standardized models.
Post-incorporation obligations
After incorporation, the company must register for the Business Activity Tax, Social Security and, where applicable, the intra-Community operators registry. Establishing a sound accounting and tax system from the start is an investment that will prevent future problems.
At BM Consulting, we support entrepreneurs and companies throughout the entire incorporation process, ensuring that every decision is made with complete information and a forward-looking perspective.