By Caitlyn Buchanan, 25.04.2019
There has never been a better time to set up a company in Spain where the GDP (Gross Domestic Product) is the fastest growing in Europe. Throughout last year (2018) Spain’s Economy has continued to grow and is now leading economic grown within the eurozone. Q4 of 2018 generated a larger share of annual GDP than any other nation in the single currency area. Spain’s Economy grew by 2.5% in 2018 marking the fifth consecutive year of hearty economic growth, which is expected to continue. In the latest report, Spain was the single largest contributor to eurozone growth, outperforming both Germany and Italy.
Spain has built a strong reputation for foreign investors boasting first-class infrastructure, high quality of life and an affordable cost of living. English is commonly spoken due to a large number of expats who holiday and live in Spain full-time.
Setting up a Company in Spain
Many international entrepreneurs have benefited from starting a business in Spain. The country’s stability and strong economic growth make this jurisdiction highly attractive and the Spanish Company Register allows foreign non-nationals to be 100% owners of Spanish companies.
There are a few company structures to choose from including
- Sole Trader – Single owner is fully liable
- Joint Venture – Two or more owners who are fully liable
- Branch Company – Parent company is fully liable
- Public limited company (S.A.) – Standard structure for large businesses (limited liability)
- Private limited company (S.L.) – Standard structure for small and medium businesses (limited liability)
Benefits of a Spanish Limited Company
A Private Limited Company (S.L) is the most popular company structure for business ventures in Spain. The benefits of incorporating a Spanish Limited Company are:
- 100% Foreign Shareholders: Foreign non-nationals can own 100% of the shares
- Limited Liability: The liability of the shareholders is limited to their company capital investment.
- One Shareholder: The minimum number of shareholders required is one
- One Administrator: A minimum number of administrators required is one
- Low Minimum Share Capital: The required minimum paid share capital is €3,000
- EU Membership: Spain is a member of the European Union (EU) offering access to the European market and other EU member states
- Audit Exception: annual audits are not usually required
Spain’s Economic Recovery
The Mediterranean country of Spain was heavily impacted by the economic recession between 2009-2013, but radical labour reforms in 2012 allowed for a more flexible labour market and by Q2 of 2014, the Spanish economy was able to reverse the trend and started creating jobs for the first time since before the recession. In just 2 years (2014-2015) Spain recovered 85% of the GDP lost during the recession. In 2015 the GDP increased by 3.2% gaining international attention for its effective structural reform efforts. In 2016, the country’s GDP grew twice as fast as the eurozone average and today Spain is leading economic grown within the eurozone.
How to Register a Company in Spain
Setting up a company in Spain can be a complicated process without knowledge of Spanish law. It’s very important to consult with a professional. The experts at eurocompanyformations.com can assist you to set up a company with our streamlined process.
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Certificate of incorporation
Once you have completed the order form we will check if your chosen company name is available and obtain a certificate of incorporation from the Mercantile Registry (Spanish Company Register).
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Local VAT registration takes 2-3 days
A Spanish Limited Company is its own legal entity and requires a unique tax identification code from the Agencia Tributaria (Spanish Tax Agency)
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NIE (Spanish tax number)
This is required for each director or shareholder
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Opening a Corporate bank account
Our bank account introduction service takes the hassle out of obtaining a bank account in the name of your new company. Once the account is opened you can deposit the minimum investment amount (this varies depending on the company type).
Please note: the Spanish Company Register will require a copy of passport and proof of residential address for each director and shareholder. If you are ready to start the process of setting up a company in Spain, please contact us today for an order form.
