Spain is among the EU nations with the highest productivity for construction companies thanks to its strong investment rates, expanding industrial sector, and welcoming business environment. In this country, where many immigrants and professionals can form a firm, the growth rate is significantly higher than the EU average.
Business registration in Spain
The once-frenzied real estate market is now sluggish. Spain has developed into a low-cost nation with a wide range of investment opportunities. Spanish is the third most common language spoken worldwide. This makes it possible to attract customers from South America as well. Spain is the fifth-largest travel market in the world and the second-largest market in Europe.
The steps for registering a company in Spain are as follows:
Gen an NIE number
For foreigners, getting an NIE number is the initial step. A foreigner can open a bank account and register for taxes using that identity number.
Select a company name
Make a list of at least three names for your company that you want to use. To see if the name is available, they must send the request to the Spanish Corporate Register. On the company’s bills and invoices, the selected name will appear as the official name.
Open a bank account for the company
Opening a corporate bank account for your company is the third step. You must deposit €3,000 as a cash contribution to establish the business in the freshly formed account if you choose to register an LLC.
Creating the shareholder’s agreement
Create a shareholders agreement and include details about each stakeholder, including the number of shares they each personally own.
Making a notary public sign the public document
To sign the public incorporation deed, go to a notary public.
Getting a corporate tax identification number is step six.
Obtain the Spanish tax office’s corporate tax identification number for the company.
Obtaining social security benefits
Visit the local social security office to register your newly formed business.
The requirements for registering a company in Spain
You must fulfill the following criteria in order to register a Spanish company:
Lowest capital
The bare minimum capital required to register a corporation is EUR 3000. Therefore, forming a company is fairly affordable. Opening a branch office does not require a certain amount of funds. The Board of Directors must consent before establishing a branch office. The general assembly would approve this resolution.
Residency requirements
Key management personnel is not subject to any residency requirements for the registration of Spanish companies. The company’s owner can be an outsider.
Minimum shareholders
You don’t need to have a certain minimum number of shareholders in order to have a branch office. Each stakeholder for a public limited company or a private limited corporation must have a minimum of 3 shareholders.
No required minimum number of directors
It is not necessary to have the bare minimum of directors for a branch office to function. The board of directors of a limited liability company must consist of at least three people. 12 directors are permitted for private limited companies. The board of a public limited business must have three or more members.
Documents needed for a Spanish business to be incorporated
You will require the following paperwork to register a company in Spain:
- Act incorporating.
- Corporate bylaws.
- Articles of Association and the Firm’s Memorandum of Association.
- Information about the corporation’s board of directors and investors.
- The company’s internal organizational structure.
Benefits of registering a company in Spain
The advantages of registering a business in this country include the following:
Tourism industry
Spain is the second-largest tourist market in Europe and the fifth-largest market worldwide in terms of travel destinations. Both Barcelona and Madrid are thriving tourist destinations in Spain. Barcelona is a well-liked tourist destination and a key location since it has one of Europe’s most stunning beach areas. The bullring is just one of the many tourist attractions in Madrid.
Governmental incentives
The Spanish government provides numerous advantages to foreign businesses. Businesses will receive a 75% discount on social security contributions if they fund various employee education programs. The Spanish government provides financial aid, which may also come in the form of a rebate on bank loans’ interest rates.
Trading companies have tax advantages
If a trading business is founded in Spain, the first two years of taxation will be assessed at a rate of 15%. The trading business would have been subject to tax in the third year at the standard rate of 25%. Businesses that have established themselves in Spanish Free Zones can take advantage of a number of advantages. These free zones offer a certain level of benefits, like a form of scaled-back corporate tax. These businesses are also eligible for reduced stamp duty and VAT.
