How to start a business in Spain? Step-by-step guide for foreign investors

Essential steps for setting up a company in Spain

Creating companies in Spain involves various formalities that depend on the type of company (limited company known as sociedad limitada or stock corporation known as sociedad anónima), the number of partners, the source of the capital and the economic activity. Here are the main steps in setting up a company:

• Apply for clearance of the company name at the Business Registry.
• Define its capital and choose a legal form.
• Open a bank account in the name of the future company.
• Draft the articles of association.
• Designate the governing body.
• Sign the incorporation deed before a notary.
• File the company with the Business Registry and obtain the final tax number (NIF).

These are the most common steps in setting up a company. However, there are major nuances depending on the specific situation of each company. Our downloadable guide explores each stage in more detail, providing practical recommendations and key documents that are not covered here.

What do you need to start a business in Spain?

To open a company in Spain, especially if one of the partners is a foreigner or the parent company is located outside Spain, the following additional requirements must be taken into account:

• The foreign partners or directors must obtain a foreigner identity number (NIE).
• The tax number (NIF) of the parent company is required in the case of subsidiaries.
• A sworn translation and apostille of the foreign documents is required.
• A foreign investment declaration is required, where applicable.

These requirements for incorporating a stock corporation or limited company may raise doubts if you are not familiar with Spanish regulations. That is why our free guide explains in detail how to manage them correctly and what documentation needs to be submitted in each case.

How much does it cost to set up a limited company in Spain?

The cost of incorporating a limited company may vary depending on a number of factors. Some of the usual items include:

• Minimum capital of €3,000.
• Notary and registry expenses.
• Translation, authentication and document management costs.
• Professional fees, if advisory services are used.

Our downloadable guide provides an estimate and recommendations on how to reduce time and costs without making mistakes that can delay the process.

Are there any alternatives to incorporating a company?

If your company is already incorporated in another country, you may want to explore other ways on how to operate in Spain without creating a company from scratch, such as:

• Branches.
• Representative offices.

If you are considering other options besides setting up a company from scratch, we recommend that you check the most common ways that foreign companies use to establish themselves in Spain and the advantages offered by each one.

Do you need advice on setting up your business in Spain?

At AGM Abogados, we have a team specialising in Business and Commercial Law that will accompany you throughout the whole process of incorporating your company, from conducting the feasibility analysis to filing with the Business Registry and registering with the tax authorities.

Our expert company formation lawyers will guide you in your choice of legal form and support you at every stage, ensuring that your company meets all the legal requirements.

If you are looking for a clear and comprehensive guide on how to set up a company in Spain, remember that you can download it for free at the top of this page.