All company names must be approved by the Mercantile Register which takes around three days, once approved the name can be reserved for ten days free of charge. Company names must not be identical or deceptively similar to other companies already registerd and the name must end with the suffix Sociedad Limitada or the abbreviation SL.
All companies are required to have a registered office where official correspondence is sent this may be a commercial or residential address and it is normally the main place of business of the company. If the company has more than one place of business, these must be stated on tax forms. We initially provide you with a registered office in Madrid, but this is easily changed to a location of your choice if required.
Only one director is required for your company there is no restriction on either residency or nationality. Corporate directors are not permitted. The director may also be a company shareholder.
Only a single shareholder is necessary, there are no restrictions on the nationality or residency of the shareholder and corporate shareholders are permitted. An initial shareholder register is filed upon incorporation but any subsequent changes to shareholdings does not need to be filed.
The share capital is €3,000, a company bank account is required to deposit the €3,000 share capital.
Companies are required to file annual financial statements and an annual return. If the company is considered ‘small’ both these may be simplified and there is no requirement to appoint a statutory auditor.
Once we have your proof of identity it takes only two weeks to incorporate your Sociedad Limitada in Spain.
Spain Company Formation – £1900
Company Administration & Registered Office – £560
VAT Registration – £120
NIE number per officer – £400
Bank Account Introduction – £420
Proof of Identity
As part of our due diligence we require proof of identity in the form of a passport copy for all directors and shareholders of the company.
Traveling to Spain is optional; incorporation documents are usually signed before a notary in Spain but we can do this on your behalf when granted a Power of Attorney.
Spanish Sociedad Limitada (SL) Company Formation
Incorporating in Spain is very quick and simple and we have an office in Madrid very close to the Tax Office and Mercantile Registry making dealing with the authorities very simple.
A Spanish Sociedad Limitada (SL) is equivalent to a Limited Liability Company in the UK or a GmbH in Austria and Germany in that it is a legal entity which is separate and distinct from the individuals who run it. For sole traders and for people in partnerships, the individuals’ personal assets are at risk if there is a claim against the organisation but shareholders in an SL are liable to lose only the value of the share capital to which they subscribe.
Incorporating an SL allows access to the lucrative Spanish market and Formacompany is uniquely qualified to help you establish and maintain your Spanish business, we have 20 years’ experience incorporating business in Spain and our Madrid office can facilitate everything from drafting the initial documentation for your company to processing and running the payroll for your employees.