Spain – Company Formation and Administration Services

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WHY TO SET UP A COMPANY IN SPAIN

Besides boasting the rich culture, good quality of life, access to talented professionals and technology, Spain has numerous other attractions to draw new businesses there.
Among the booming sectors for potential businessmen to consider include are technology, mobile devices, renewable energy and energy efficiency, biotechnology. Also, as a member of the European Union, Spain has direct access to the EU markets and is geographically close to North African and Middle Eastern markets. Its area of influence includes the Latin America countries, with which it has the most treaties to avoid double taxation.
Setting up a business or investing in Spain is not hard. However, to do it right and avoid any problems that may arise in the future, you will need the appropriate legal, tax and employment advice.

Advantages in doing business in Spain:

  1. Size of market – Spain is the 5th largest market in European Union. Consequently, local businesses will be able to market their goods/service to a market of 47 million people.
  2. Location – Spain’s strategic location provides Spanish businesses the advantage of access to 700 million potential customers across the EU and North Africa. Furthermore, Spanish businesses find ti easy to do business with South American countries due to their common language.
  3. Tourism – Spain is the 2nd largest tourism market in the Europe and the 5th largest in the world. Consequently, Spanish businesses will have access to 58 million foreign tourists annually
The general CIT rate in Spain is 25%. Other tax rates may apply, depending on the type of company that is taxed and the type of business carried out.
Newly created companies in Spain are taxed at a 15% tax rate for both the first tax period in which they obtain a profit and the following tax period.

INCORPORATION PROCESS IN SPAIN

  • Obtaining the NIE

First, you must obtain your identification number as a non-Spanish citizen called NIE. The NIE will allow you to open a bank account, to work and create a business. This number can be obtained very quickly (generally within one day).

  • Certification of company name

Then, you must prepare an application documents to certify the company name.  You are required to provide with five different possible names for your future business.

In the next following four days, a document of the company will be drawn up, certifying that you are the only person to own this particular company name.  This document will be necessary for the constitution of the company and will allow you to register your company in the Mercantile Register of Madrid.

  • Opening a bank account for the company

Once you have the certificate of the company name, the next step is  opening a bank account in Spain. This account must wear the name of your company. When creating a SL, the minimum capital required is € 3006.

  • Going to the notary

This step is really important when setting up a business in Spain. You will determine the structure of the business and the status of the owners.  At this time, you will be confronted and will have to provide answers to the following kind of questions: What is the degree of participation of owner, who has a decisional power, what would happen if one of the partners wants to sell its stake …

The specification of these judicial elements is very important to set up a business. Therefore, we advise you to contact a Spanish accounting firm to help with the legal part.

  • Registering

The fiscal number CIF (VAT) of a company is essential to its constitution. This number may be obtained within 3 days. Then we will declare the tax burden of the company in Spain, and communicate the activity that the company will develop in Spain. Before starting a business, it will also be important to establish a fiscal strategy.

The whole process of Spanish company incorporation performed by our Spanish law firm takes around two working weeks. After the registration, you should hire an accountant.

REQUIREMENTS AND SPECIFICATIONS IN SPAIN

Entity type and suffix: Limited liability company, (S.L) or Public limited company (S.A.)
Shareholders/Founders: at least 1 person or legal entity, foreign entities accepted
– Documents Copy of I.D. document of a founding partner(s)
Directors/Board members: at least 1 natural person, non-resident directors accepted+ 1 Spanish based authorized signatory
– Documents Copy of I.D. document of a person to be registered as a director
Share Capital: The minimum share capital requirement is EUR 3.000€
Residency: non-resident directors allowed
Corporate tax: 25% (Tax prepayment registration mandatory if business will be domestic) 
VAT: 21%
Annual financial report: Yes
Registration address: Yes (in Spain)
A Company bank account: Start account is required before company registration
Other: Newly created companies are taxed at a 15% tax rate for both the first tax period in which they obtain a profit and the following tax period. This tax rate is not applicable to companies that, by law, are considered equity companies or to newly created companies that are part of a national or international group.

The reduced rate may also be inapplicable if such business activity was previously carried out by a related entity or individual.

 

INCORPORATION EXPENSES AND AVAILABLE SERVICES

COMPANY REGISTRATION EXPENSES: from EUR 550 Government fee + Notary fees from EUR 300
Pricing: Expenses may vary depending on entity type, document requirements and type of founders

  • Establishment of company
  • Standard M&MA and Minutes of Meeting
  • Company documents
  • Apostille
  • Courier services

ASSISTANCE & CONSULTING BEFORE AND DURING THE INCORPORATION: from EUR 1.980
Pricing: EUR 99 – 185 /hour depending on tasks (min assignment with Spain company 20 hours)

    • Business and tax consultation before incorporation
    • Assistance in registration process
    • Assistance in Start -bank account opening
  • Document legalization and recommendation letters
  • Business plan and Due Diligence
  • Bank accounts and payments solution
  • Insurances & Finance

ADMINISTRATION, LEGAL & ACCOUNTING SERVICES: Optional
Pricing: ask quotation from selected services

  • Company address, Virtual office services
  • Qualified contact person
  • Custom M&MA
  • Agreements between founders, partners, directors, contractors and employees
  • Special business licenses
  • Technical directors and UBOs
  • VAT and Tax prepayment
  • Bookkeeping
  • Accounting & Payroll
  • Financial controller
  • Funding
  • IP

MIN. TOTAL COSTS:

REGISTRATION FEES: EUR 550 + 300
ASSISTANCE & CONSULTING: EUR 1.980
ADMINISTRATION, LEGAL & ACCOUNTING: Optional
SPAIN COMPANY FORMATION FROM: EUR 3.350

SEND YOUR DETAILS AND BRIEF FOR QUOTATION!

Please send your contact details to schedule a meeting or send a brief information package so we can get back to you with quotation by email. We normally reply to queries within 3 hours!

 

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ABOUT SPAIN

BACK - SET UP A COMPANY

In cases KYC or/and Due Diligence process required Novasigma might require a personal meeting with all its new clients before proceeding any assignment

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