Business entities in Spain
Healy Consultants Group PLC will assist our Clients with Spain business setup after advising the optimum corporate structure for their Firm. Our services in Spain include i) Spain company incorporation, ii) government license registration, iii) business bank account opening, iv) employee recruitment, v) visa strategies and vi) office rental solutions.
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The Spanish Limited Liability Company (Sociedad Limitada)
- This is the most commonly used entity for new business setup in Spain. A Spanish LLC must appoint 1 director and 1 shareholder, who can be of any nationality;
- The minimum share capital required is €3,000 that needs to be paid in before company formation.
Best uses for a Spanish Limited Liability Company: this structure is ideal for small and medium sized businesses.
The Spanish Public Liability Company (Sociedad Anonima)
- This business entity is recommended when the stakeholders intend to publicly list the company. Such structure requires a minimum capital of €60,000 for incorporation;
- The minimum required appointments include 1 director and 1 shareholder, who, 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.
Best uses for a Spanish Public Limited Company: larger corporations prefer to register a PLC in Spain in order to quickly and efficiently increase their pool of investments.
- Spanish corporate law allows a branch office to be 100% foreign owned, and its scope of operations is defined by the parent company;
- The branch office is allowed to have an independent management team and operate corporate bank account based in Spain;
- In addition to the corporate taxes, Spanish branches face an additional remittance tax of 21%.
Best uses for a Spanish branch office: Financial conglomerates, such as banks, prefer to register a branch office in order to consolidate their profits globally.
- While the Spanish representative office can be 100% foreign owned, this structure is not allowed to engage in direct sales within Spain;
- Consequently, the representative office in Spain can only engage in i) market research and ii) promoting the business and services of the parent company.
Best uses for a Spanish representative office: Before bringing a new product or service, many investors prefer to explore the market and engage in promotional activities via Spanish representative office registration.
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 Legal Liability Limited Limited Unlimited Unlimited 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 Minimum shareholders 1 1 0 0 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.