Company Formation Spain · Madrid
Company Registration in Spain
Our agents help foreign investors set up a company in Spain and they offer additional services. Contact us for opening a Spanish company.
You can start your company in Spain through our online process right away. If you have questions, you can explore our website or contact us for in-depth information on the formation of Spanish companies.
Company formation in Spain
State fees and the lawyer’s or service provider’s fee apply.
| Quick Facts | |
|---|---|
| What types of company formation services do you offer in Spain? | – company formation in Spain, – bank account opening, – taxation & social security registration, – business license issuance, etc. |
| Is foreign ownership allowed in Spain? | Yes, generally without restrictions (prior authorisation is needed for some non-EU investments in strategic sectors). |
| What is the most popular business structure in Spain? | The Spanish S.L. (Sociedad Limitada) |
| Costs for forming an LLC in Spain | – EUR 425 for standard incorporation, – around EUR 600 for urgent company formation services in Spain. |
| Minimum share capital for an LLC in Spain | EUR 1 (since Law 18/2022 "Crea y Crece"; special reserve and founder-liability rules apply until capital reaches EUR 3,000) |
| Minimum number of shareholders for an LLC | At least 1 |
| Steps in forming a company in Spain | – choosing the company structure, – reserving the business name, – opening a Spanish bank account, – registering for taxation, – drafting the company documents, – obtaining the digital certificate, etc. |
| Required documents for business formation in Spain | – IDs/passports, – proof of a registered business address, – proof of deposited capital & paid fees, etc. |
| IMPORTANT condition to consider | Must obtain the company NIF and digital certificate. |
| Time frame for the incorporation | 5 weeks for an LLC in Spain. |
| Company extensions available in Spain | – branches, – subsidiaries, – representative offices |
| Are ready-made companies available in Spain? | Yes, we can provide a list of shelf company suppliers. |
| Do you provide virtual office packages in Spain | Yes, virtual domiciliation is possible. |
| Additional costs for company formation in Spain | – starting from EUR 25/month for a virtual office, – around EUR 3,900 as legal fees, etc. |
| Costs for accounting services for your firm in Spain | Starting from EUR 150/month for small companies |
We invite you to watch a short video about opening a company in Spain:
Are there any restrictions on foreigners registering a company in Spain?
No, you can set up your company in Spain, no matter where you are from.
We encourage foreign investors to come to Spain. We have an English-speaking team of lawyers and consultants who can offer guidance no matter the country you are from.Federico Richardson – lawyer
What types of companies/entities are available in Spain?
- limited liability company;
- stock corporation (sociedad anonima);
- branch office (not an actual company, it has specific legal status)
- subsidiary (of a foreign company)
- sole proprietorship;
- holding companies;
- partnerships.
What is the most popular business structure in Spain?
The Spanish S.L. (Sociedad Limitada) is the most common business structure for international clients, equivalent to a private limited company.
Here is an infographic with info about the advantages of doing business in Spain:
What is the minimum share capital for an LLC in Spain?
EUR 1 is the minimum share capital for opening an LLC in Spain (since Law 18/2022); until the capital reaches EUR 3,000, special legal-reserve and founder-liability rules apply.
What are the requirements for opening a company in Spain?
- a registered address in Spain. A virtual office is also permitted (we can provide various packages),
- company shareholders and directors must have NIE (Número de Identidad de Extranjero), which is the Spanish ID for foreign citizens,
- a business name previously verified and reserved with the Spanish Commercial Registry/Registro Mercantil,
- Articles and Memorandum of Association,
- company tax ID (NIF),
- digital Certificate,
- local bank account,
- power of attorney for a company representative (who can be one of our Spanish agents),
- completed standard form with company details.
IMPORTANT! Please bear in mind that if the business owner works for or manages the company and holds at least 25% of the shares as a director (or at least 33% otherwise), he/she must register with the Spanish Social Security as “autónomo societario”. Plus, signing the deed of incorporation before a notary, via our POA, is mandatory.
What are the costs for company formation in Spain?
We enlist some of the costs to consider when opening a company in Spain:
- For standard company registration – around EUR 425 in total incorporation costs (notary, registry and related fees). 1.5–3 months processing time,
- For urgent company formation – around EUR 600 in total costs, and ready in one week,
- Legal fees – around EUR 3,900,
- Virtual office package – Starting from EUR 25/month for basic virtual office services,
- Accounting services – Starting from EUR 150/month for small companies.
What are the main advantages of setting up a limited liability company in Spain?
- the company may be set up in Spain with 100% foreign capital;
- the liability of its shareholders is limited to their contribution to the company’s capital;
- although numerous investors can associate in a limited liability company, the business form can also be registered by a single shareholder.
How can you open a general partnership in Spain?
This type of business entity is made up of at least two members with equal responsibilities and rights, since they are all considered general partners. Read more about this structure here. Read more about this structure here.
Who can set up a sole trader in Spain?
If a natural person decides to open an entity in Spain on his/her own, an option would be the sole trader, which is the simplest form of company formation in Spain. No minimum share capital is required for this type of entity. Foreigners can set this up however they have to be Spanish residents.
What does opening a branch in Spain entail?
You can read full info here.
Can subsidiaries be established in Spain?
Yes, access information here.
How fast can you start a company in Spain?
It takes around 5 weeks to incorporate a company in Spain, such as a limited liability company. On the other hand, subsidiaries can be set up in about 7 weeks. Although the Trade Registry procedures take much less time, we have considered the overall time to draft, sign, authenticate and send documents to our office.
What types of company formation services do you offer in Spain?
- support for obtaining a Spanish NIE, the first step in company formation,
- preparing the Power of Attorney for which online signing is available,
- name reservation and verification,
- preparation of all company formation documents,
- notary representation,
- Commercial Registry filing,
- assistance in getting the company NIF and digital certificate,
- business activity registration with the Tax Office/Agencia Tributaria in Spain,
- support in opening a bank account in Spain,
- accounting services & tax compliance, etc.
What can go wrong during the setup of a Spanish company?
We incorporated thousands of Spanish companies on behalf of foreign investors and we have always managed to overcome any potential problems. In our experience main problems are:
- Understanding the Notary's document authentication procedure (in Spain or abroad). If failing to authenticate the documents as per our specifications then you will have to go through the entire procedure again;
- Providing all KYC information for the bank. In order to open a bank account you will have to provide ID documents, declare source of funds and explain in detail how your company will activate on the Spanish market;
- Be prepared to activate in a different market than your own with its own specific requirements and regulations.
What are Spain's corporate taxes?
Spain has a corporate taxation method differentiated in accordance to a company's income level, company age and even company type. The main corporate tax rate is 25% (of profit), however rates will gradually go lower for “small entities” with turnover below 10 mil. EUR (Entidad de Reducida Dimensión ) each year until reaching a final rate of 20%. If incorporating a company in 2026 for example you will pay 23% and 22% in 2027 etc.).
If your turnover will not exceed 1 mil. EUR then your company will be a “micro-enterprise” so you will be taxed 19% up to 50,000 EUR and 20% of the remaining amount (the rate will go lower each year until reaching 17%).
Important: Newly created entities can pay 15% for the first 2 financial filings!
Why choose your service?
Our company – Lexidy Law Boutique SLP – is a reputable law firm, member of several legal institutions operating in Spain and in other European countries. We are part of the following Spanish and international organizations:
- the International Bar Association,
- the German-Spanish Association of Lawyers (Deutsch-Spanische Juristenvereinigung eV Hispano-German Association of Jurists),
- the Barcelona Bar Association (ICAB – Il·lustre Col·legi de l’Advocacia de Barcelona),
- the Sweden – Spain Chamber of Commerce in Barcelona (Camara de Comercio Hispano – Sueca de Barcelona);
- IMC.
For more details related to the registration procedure of a company in Spain, you may contact our Spanish specialists.