Of course, all around the year Spain receives millions of visitors, as the country is a favourite destination for tourists. Already 30 years ago, Spain became member of the European Union. One of the largest economies within the euro zone, Spain is since 2014 again in full economic recovery. As a solid member of the European Union, Spain is also an attractive destination for foreign investment.
Spanish laws on company formation and on government of same are completely in line with relevant European directives.
With more than 300 subsidiary companies set up in Spain, we have a broad experience in setting up Spanish companies for our clients. The most common legal entity to be used for international and local trading, is the “sociedad de responsabilidad limitada”, the limited liability company (“SL”). Of course, we are also prepared to set up other legal entities, such a public limited company (“sociedad anónima”, “SA”) or a Spanish branch, or to register a permanent establishment.
The main features of the SL are:
- Minimum capital is EUR 3,000,00 (for the SA, this is EUR 60,000.00)
- The SL cannot issue a document that represent shares: the notarial deed is the title of ownership (the SA can issue bearer shares and registered shares)
- Transfer of SL’s shares are restricted by articles of association (SA shares can be freely transferred)
- If a legal entity is appointed director, it must appoint a physical person as its representative
Our clients come from all five continents, and their businesses range from small ones to listed multinationals.
We assist our clients with the entire set up, starting with the Spanish ID number for directors and shareholders, and ending with the recording of the deed of incorporation at the public register. In between, we coordinate opening the bank account, arranging for the Spanish tax numbers and signing the deed of incorporation.
After incorporation, we can handle the bookkeeping, payroll services, tax returns, the preparation and filing of financial statements and overall compliance, of the Spanish companies our clients. A limited power of attorney can be helpful here, so that we can carry out our duties.
Summarizing, we know the questions and the answers that arise when starting up and operating a subsidiary in Spain.