Business entities in Spain

Spain legal business structuresHealy 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.

  • Branch Office

    • 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.

  • Representative office

    • 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 CompanyPublic Limited CompanyBranch OfficeRepresentative Office
    Also known associedad limitadasociedad anonimasucursaloficina de representacion
    How long to set the company up?4 weeks4 weeks6 weeks6 weeks
    How long to open company bank account?3 weeks4 weeks4 weeks4 weeks
    Legal LiabilityLimitedLimitedUnlimitedUnlimited
    Wholly Foreign ownedYesYesYesYes
    Minimum paid-up share capital€3,000€60,00000
    File annual tax returnYesYesYesNo
    Tax Registration Certificate required?YesYesYesNo
    Recommended corporate Bank AccountBanco SantanderBBVABanco SabadellLa Caixa
    Does our Client need to travel?NoNoNoNo
    Resident director requiredNoNoNoNo
    Resident shareholder requiredNoNoNoNo
    Minimum directors allowed1111
    Minimum shareholders1100
    Each shareholder and director must have a TINYesYesYesYes
    Spain resident company secretary requiredYesYesYesYes
    Corporate shareholders allowedYesYesYesNo
    Corporate director(s) allowedYesYesYesYes
    Public register of shareholders and directorsYesYesYesYes
    Spain Corporate Tax Rate28%28%28%0
    Annual financial statements requiredYesYesYesNo
    Statutory audit requiredNoYesYesNo
    Allowed to issue sales invoicesYesYesYesNo
    Allowed to sign contractsYesYesYesNo
    Allowed to import and export goodsYesYesYesNo
    Can rent an office in SpainYesYesYesYes
    Can buy Spain property?YesYesYesNo
    Can own equity in other Spain companies?YesYesYesNo
    Estimate of engagement costs
    Total Spain business setup costs in Yr. 112,68913,88913,88913,139
    Subsequent annual costs (incl. accounting and tax fee)3,4003,4003,4002,600
    Sample Engagement fee InvoiceCost for setting up Spain LLCCost for setting up Spain PLCCost for setting up Spain branch officeCost for setting up Spain representative office

Frequently asked questions

Contact us

For additional information on our business setup services in Spain, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi