Introduction to Registering a Company in Spain
Spain has one of the most robust economies in the EU, thanks to strong inward investment, a booming manufacturing sector and a liberal business environment. The country’s economic annual growth has been outperforming the EU average for a number of years and many foreign entrepreneurs and expats are benefiting from setting up a company in Spain. With a once-booming property market which has now cooled, Spain is a low-cost land of opportunity for foreign investors. It should be noted that bureaucratic requirements are strict, so please contact EuroCompanyFormations.com to help ensure your new Spanish company gets off to a flying start. Contact us for further details today.
What are the main types of Company Formations in Spain?
The two most popular forms of corporate structure in Spain are as follows:
- Public limited company (S.A.)
- Private limited company (S.L.)
What are the main features of a public limited company in Spain?
- standard structure for large businesses
- minimum share capital is €60,101.21, at least 25% paid up
- minimum number of shareholders is one
- annual audit is required, subject to company size
What are the main features of a private limited company in Spain?
- usual format for small and medium businesses
- minimum share capital is €3,000, all paid up
- minimum number of shareholders is one
- annual audit is not usually required
What other types of company formation are there in Spain?
Other business formats, less common but equally valid, are as follows:
- sole trader – one owner with unlimited liability
- joint ownership – two or more proprietors with unlimited liability
- general or limited partnership
- branch or representative office
Is it complicated to set up a company in Spain?
Although, Spain’s reputation for bureaucratic efficiency has improved and the business climate has become more liberal, professional advice remains absolutely essential when establishing a company. We are experts in company formation in Spain, so please contact us for further details.
What about corporation tax for Spain Company Registration?
The Corporate Tax Rate in Spain stands at 25 percent. Corporate Tax Rate in Spain averaged 33.32 percent from 1981 until 2016, reaching an all time high of 35.00 percent in 1984 and a record low of 25.00 percent in 2016.
How easy is it to recruit staff in Spain for my company?
Spain’s long-running economic boom has put pressure on the labour market but unemployment remains relatively high. However, recruitment is rarely a problem for foreign companies seeking local staff. The workforce is well educated and flexible, labour costs are low and there are recruitment agencies throughout the country. We will be happy to refer you to our network of local recruitment specialists – please contact us.
What is the regulatory environment like for Spain Company Incorporation?
In line with standard EU practice, companies are required to register and to submit annual accounts to the regulatory authorities. Annual audits are compulsory for larger companies. There are very few controls on foreign investment apart from restrictions on non-EU residents in certain strategic sectors, such as telecommunications. The labour market, however, is subject to tighter regulation. The maximum working week is 40 hours and companies have to provide six weeks annual leave to all workers.
Are there financial incentives available?
Spain offers a broad range of incentive schemes, many of them funded by the EU. These include regional incentives for investment in less developed areas of the country, measures to encourage investment in specific sectors and tax breaks aimed at reducing unemployment among young people.
And what about banking facilities in Espana?
Spain is said to have more banks than any other EU country. There are two reasons for this. First, there is a plethora of regional banks and second, Spain’s economic boom has made it a magnet for international financial institutions. Although finding a bank is easy, opening a bank account is more difficult. We will be happy to tackle the bureaucracy on your behalf, freeing you to focus on your business.
How can I get more information on Spain Company Registration?
Our company formation service makes it easy for you to open a company in Spain, so please contact us in EuroCompanyFormations.com for further details. We have an associate office in Barcelona, Spain which makes our service easy for you.