How to form a Limited Company in Spain

Company Type	Time to Incorporate	Cost
SL	2 weeks	€1800

To first step to form a limited company would be to obtain a license to use the desired name at the Registro Mercantil. We can carry this out in your name.

Bank Account

We can help you open a bank account in any bank or building society, to hold the share capital. The minimal share capital would be €3000 for limited companies, this is made up of the payments of the members and is divided in shares or shareholdings. All the share capital must be paid at the time of the incorporation of the limited company.

Incorporation Deed

You have to notorise the incorporation deed. The incorporation deed must include personal details of the shareholders, name of the company, name of registered office, what activity the company is involved in and issued share capital. Also, the Certificate of Name clearance must be presented by the appropriate registry and a bank receipt that proves the payment of Share Capital and C.I.F.

Procedures to start the company

Once the incorporation deed has been notorised, you have to ask for the tax identification code (Código de Identificación Fiscal) at the tax office.

In addition you have to pay the tax on notarial documents (Impuesto de Trasmisiones Patrimoniales y Actos Jurídicos Documentados) at the special tax office of the region (Comunidad Autónoma) which could be (for example) 1% of share capital.

We advertise the formation of the new company. 

We need to lodge the declaration of commencement of activities and register for the "Activities Tax" (Impuesto sobre Actividades Económicas) with the tax office.

In cases where the company has decided to employ staff; the company needs to be registered for Social Security. 

We need to get the company minute book, which is stamped locally when the company is incorporated. 

We need to communicate the opening of any new centre of work and, in cases where there will be people employed, this needs to be communicated to the register of business activities in the labour branch of the municipality (Consejería de Trabajo) or in the Provinicial centre for work (Dirección Provincial de Trabajo)

Once you have an office you have to apply for an openning license of the Ayuntamiento, in this you will have to present:

• Architects' plan of where the office is
• Valuation of the office instalations
• A descriptive note of the activity to be carried out
• The receipt, showing that municipal taxes have been paid.

Finally you have to register the workers in Social Security (Seguridad Social) and present your work contract in the Instituto Nacional de Empleo in 10 days.