Business entities in Spain
Healy Consultants will assist our Clients with Spain business setup after advising the optimum corporate structure for their Firm. There are several legal entities available for Clients interested in doing business in Spain, the most common being the limited liability company. The Spanish public limited company is also an attractive option for those willing to raise capital in Spain. Alternatively, foreign companies can also register a branch office or a representative office.
The Spanish Limited Liability Company (Sociedad Limitada)
- This is the most commonly used business entity for Spain company setup. A Spanish LLC must appoint 1 director and 1 shareholder, who can be of any nationality. The minimum share capital required is €3,000. The majority of multinational companies resister a Spanish LLC;
The Spanish Public Liability Company (Sociedad Anonima)
- This business entity is recommended when the promoters intend to publicly list the company. Such a company requires minimum capital of €60,000 for incorporation. Furthermore, 1 director and 1 shareholder must be appointed before Spain company setup, who can be of any nationality;
- To give your company a marketing edge, Healy Consultants recommends our Clients establish a Spanish PLC instead of an LLC. In Spain, it is not necessary for a PLC to list on the stock exchange Furthermore, it is not mandatory for a PLC to submit an internal audit.
- Spanish corporate law allows a branch office to be 100% foreign owned, the scope of operations will be defined by the parent company. The branch office will have an independent management team and corporate bank account based in Spain;
- In addition to the corporate taxes, branches face an additional remittance tax of 21%.
- While the Spanish representative office can be 100% foreign owned, it is not allowed to make direct sales within Spain. Consequently, this entity can only engage in i) market research and ii) promoting the business of the parent company.
Table of comparison between Spain entities
|Limited Liability Company||Public Limited Company||Branch Office||Representative Office|
|Also known as||sociedad limitada||sociedad anonima||sucursal||oficina de representacion|
|How long to set the company up?||4 weeks||4 weeks||6 weeks||6 weeks|
|How long to open company bank account?||3 weeks||4 weeks||4 weeks||4 weeks|
|Wholly Foreign owned||Yes||Yes||Yes||Yes|
|Minimum paid-up share capital||€3,000||€60,000||0||0|
|File annual tax return||Yes||Yes||Yes||No|
|Tax Registration Certificate required?||Yes||Yes||Yes||No|
|Recommended corporate Bank Account||Banco Santander||BBVA||Banco Sabadell||La Caixa|
|Does our Client need to travel?||No||No||No||No|
|Resident director required||No||No||No||No|
|Resident shareholder required||No||No||No||No|
|Minimum directors allowed||1||1||1||1|
|Each shareholder and director must have a TIN||Yes||Yes||Yes||Yes|
|Spain resident company secretary required||Yes||Yes||Yes||Yes|
|Corporate shareholders allowed||Yes||Yes||Yes||No|
|Corporate director(s) allowed||Yes||Yes||Yes||Yes|
|Public register of shareholders and directors||Yes||Yes||Yes||Yes|
|Spain Corporate Tax Rate||28%||28%||28%||0|
|Annual financial statements required||Yes||Yes||Yes||No|
|Statutory audit required||No||Yes||Yes||No|
|Allowed to issue sales invoices||Yes||Yes||Yes||No|
|Allowed to sign contracts||Yes||Yes||Yes||No|
|Allowed to import and export goods||Yes||Yes||Yes||No|
|Can rent an office in Spain||Yes||Yes||Yes||Yes|
|Can buy Spain property?||Yes||Yes||Yes||No|
|Can own equity in other Spain companies?||Yes||Yes||Yes||No|
|Estimate of engagement costs||€||€||€||€|
|Total Spain business setup costs in Yr. 1||12,689||13,889||13,889||13,139|
|Subsequent annual costs (incl. accounting and tax fee)||3,400||3,400||3,400||2,600|
|Sample Engagement fee Invoice|
Frequently asked questions
How many weeks does it take for Spain business setup?A Spain limited liability company can be incorporated within 4 weeks . On average, it takes an additional 4 weeks for the corporate bank account opening.
What is the minimum shared capital required to setup a company in Spain?Clients can setup a Spanish company with the minimum required share capital of €3,000.
Will I need to travel to Spain for company setup?No. Healy Consultants will register the company on your behalf without the need of you traveling to Spain.