Spanish Company Formation
SET UP BUSINESS IN SPAIN TODAY!
Introduction to Spanish Incorporation
Spain has one of the most robust economies in the EU and is the 9th largest economy in the world, thanks to strong inward investment, a booming manufacturing sector and a liberal business environment. Annual growth, currently well over 3%, has been outperforming the EU average for a number of years. Spain has a deserved reputation as a low-cost land of opportunity for foreign investors, but bureaucratic requirements are strict. With our long standing relations with the country we have become leading specialists in Spanish company formation. Contact us to find out more about how to set up business in Spain.
What are the main types of Spanish Company Formation?
The two most popular forms of company to incorporate in Sapin are as follows:
- Public Limited Company (S.A.)
- Private Limited Company (S.L.)
What are the main features of a Public Limited Company (S.A)?
- This is the standard structure for large businesses
- The minimum share capital is €60,101.21, with at least 25% to be paid up
- The minimum number of shareholders is one
- An annual audit is required, subject to company size
What are the main features of a Private Limited Company (S.L)?
- This is the usual format for small and medium businesses
- The minimum share capital is €3,005.06, to be all paid up
- The minimum number of shareholders is one
- An annual audit is not usually required
What other types of Spanish company are there?
Other business formats, less common but equally valid, are as follows:
- Sole Trader – one owner with unlimited liability
- Joint Ownership – two or more proprietors with unlimited liability
- General or Limited Partnership
- Branch or Representative Office
Is it complicated to set up a business in Spain?
Spain has a deserved reputation for bureaucratic inefficiency and whilst this has improved as the business climate has become more liberal, professional advice remains absolutely essential when establishing a company. We are experts in Spanish Company Formation, so please contact us for further details.
What about Corporation Tax?
Corporation Tax in Spain is fairly high at a rate of 35%, although there are concessions at a rate of 30% for smaller companies on their first €90,152 of profits. A smaller company is defined as one whose annual turnover is below €3 million.
How easy is it to recruit staff in Spain?
Spain’s long-running economic boom has put pressure on the labour market, but unemployment remains relatively high. However recruitment is rarely a problem for foreign companies seeking local staff. The workforce is well educated and flexible, labour costs are low, and there are recruitment agencies throughout the country. We will be happy to refer you to our network of local recruitment specialists – please contact us.
What is the regulatory environment like for those considering Company Registration Spain?
In line with standard EU practice, companies are required to register and submit annual accounts to the regulatory authorities; this is a compulsory requirement for larger companies. Apart from restrictions on non-EU residents in certain strategic sectors, such as telecommunications, there are very few controls on foreign investment . The labour market, however, is subject to tighter regulation. The maximum working week is 40 hours and companies have to provide six weeks annual leave to all workers.
Are there financial incentives available for foreign investors considering Spanish Incorporation?
Spain offers a broad range of incentive schemes, many of them funded by the EU. These include regional incentives for investment in less developed areas of the country, measures to encourage investment in specific sectors, and tax breaks aimed at reducing unemployment among young people.
How easy is it to close a Spanish company?
Please click here for further details and services on closing a company.
Company Registration Spain
And what about banking facilities?
Spain is said to have more banks than any other EU country. There are two reasons for this: Firstly, there is a plethora of regional banks and second, Spain’s economic boom has made it a magnet for international financial institutions. Although finding a bank is easy, opening a bank account is more difficult. We will be happy to tackle the bureaucracy on your behalf, freeing you to focus on your business.
To talk to a Spanish formation specialist call us on
+44 (0)208 421 7470,
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or simply fill in the enquiry form below and we’ll get back to you.