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Spainish VAT/IVA Registration

Spain Key Points

  • Time - only 2 weeks to incorporate your company
  • Cost - a Spanish company will cost £1740
  • Directors - only one director of any nationality, is necessary for your SL company
  • Shareholders - only one shareholder of any nationality, is required
  • Share Capital - the share capital requirement is only €3000
  • Support - using our 20 years experience we guide you throughout every step of the company formation process
  • All directors and shareholders will require a Spanish fiscal identity number
  • VAT registration within 2 days

VAT/IVA Registration

We obtain a company name certificate from the Mercantile Register, confirming that your company name is acceptable and not already registered. This certificate for company name clearance is important as it is given to the notary, and a copy is also given to your bankers and the tax authorities.

We submit your company name to the Mercantile Registry and obtain a Company Name Certificate.

We then apply for a provisional company tax identification code (código de identificación fiscal/CIF) and register for VAT (IVA). Your CIF will act as your VAT number and allows you to open a bank account in the company’s name and deposit the required amount of capital, which you must do before incorporation can take place. You, or your accountant, can apply for a CIF at the tax office. To apply for your CIF number, you must provide the following details: the name of your company (and the Negative Name Certificate from the Mercantile Registry), the registered address of the company, and identification in the form of your passport or residence permit. The tax office will then issue you with a certificate called an Identificación Fiscal that has your CIF number on it.

Once you have a CIF, you can open a bank account in the company’s name and deposit the required amount of capital. The certificate from the tax office states your company name with the addition of the words en constitución, which means that your company is in the process of being incorporated. You will receive another certificate ( Certificado del Desembolso Efectuado) proving that you’ve paid this amount into your business account. The certificate is also required to obtain your permanent CIF just before you start trading.

The company constitution, or deed of incorporation, can then be prepared and signed before a notary

  • The Company Name Certificate from the Mercantile Registry
  • The company’s provisional CIF
  • The certificate showing the deposited share capital
  • Documents to prove the identity of the founding partners.

The notario will also need to see the company bylaws, which should include such details as your corporate name and business purpose, the business address, your capital and the number of shareholders. You will also have to state whether any directors or administrators will be paid and, if so, what the payment arrangements will be. Finally, you must detail your corporate fiscal year, which can be no longer than one calendar year. The fiscal year is from 1st January to 31st December, and it’s simpler if your company’s fiscal year is the same. After the signing, your company bank account can be activated and the authorised signatories registered with the bank.

We pay the 1 per cent tax on the share capital at your local regional tax office.

Then we register your company with the Mercantile Registry by lodging the notarial deeds and forms showing name clearance, the CIF number and payment of the share capital tax.

The final step is to obtain your permanent CIF from the tax office and register your company for the ‘tax on economic activities’ ( Impuesto sobre Actividades Economicas – IAE) in order to be issued with a business licence. For this you will need the certificate showing your provisional CIF, your deed of incorporation and a photocopy of your registration with the Mercantile Registry.