Ready to start a business in Spain? Need to know what the advantages and disadvantages of a ‘Sociedad Limitada’ (SL) and a ‘Sociedad Anónima’(SA) ? Is it better to form a new company or buy an existing one? We answer some of the most common questions asked.
An SL is similar to the British ‘Ltd’ or the American ‘LLC’. Most companies in Spain are SL companies.Accounting for an SL is fairly straight forward. An SL requires capital backing of 3006€ wheras accounting for an SA is more complicated and yearly auditing is required. A SA requires a backing of 60,000€.
We can help you through the following processes
· Registration of the company name. (Registro Mercantil Central) gives the name holder the exclusive right to use that name for commercial purposes and confirms that the name you intend to use is not already registered.
· Apply for your C.I.F (company tax identification code) at the tax office (Delegación de Hacienda).
· Deposit the capital into a bank account in the company’s name; the amount of capital will depend upon the type of corporation you intend to set up.
· Deed of incorporation. The founding partners, when applicable, will need to sign the constitution deed for the business before a notary.
· Pay the transfer tax at the tax office of the province where the company has incorporated
· Registering the company at the Corporate Registry (Registro Mercantil), it shall be done once the transfer tax has been paid.
· Formal Declaration to start the activity of the company shall be filed before the Spanish Tax Office (Delegación de Hacienda).
· Enter the company in the Tax Office (Delegación de Hacienda)
· Registration of the company at the Social Security General Treasurership.
· The company’s director with direct control of the society shall join the Autonomous workers’ special system.
· Acquire the “libro de matrícula“. This book will log personnel registration as well as the visits that Labour Inspectors (Inspección de trabajo) pay to the work centre.
· Communication of the opening of the work centre or resumption of economic activity, it must be filed before the Regional Work Authorities Office (Dirección Provincial de Trabajo).
· Solicitud Licencia de Apertura de Ayuntamiento Application for the Opening Licence from the Town Hall
· Proof of professional/educational qualifications, recognised under Spanish/EU law.
· Depending on the kind of company, tax books (libros contables) may be required.
· Declaration of foreign investments in Spain. Foreign investments assigned to set up a company in Spain shall be declared to the Spanish Investments Register.