Top 7 Reasons to Register your Company in Spain 

Spain is rapidly becoming one of the most prominent startup capitals in the world, the best business opportunities are those that individuals create. Many Spanish entrepreneurs are well-known and young, This is all due to the increasing investment opportunities in Spain.

Spain is now the land for foreign investors seeking new opportunities to invest in business ventures. Spain is now the fourth most powerful economic country in Europe, boasting a $1.3 Trillion Gross Domestic Product (GDP), and is now the fourth most populous.

Spain is also known for its laid-back culture and that’s one of the significant reasons to register your company in Spain. Eventually, once you become comfortable with doing business in Spain culturally, you will begin to feel the benefits of the Iberian dream and realize that you made the right choice in moving.

This article will discuss all the reasons to register your company in Spain as the ideal place to move for business purposes. Let’s begin with the benefits of doing business here in Spain.

What are the various Reasons to Register your Company in Spain? 

Down below we’ve listed numerous reasons to register your company in Spain, so without any further delay let’s get started. 

1. Limited liability – Sociedad Limitada (SL)

Spanish entrepreneurs prefer Limited Liability or Sociedad Limitada business because it limits entrepreneurial liability to capital invested in the Company and this is one of the reasons to register your company in Spain.

• It is not easy to get your business to succeed.
• You cannot afford to let the business fail.
• The LC – SL is risk-free. You will never lose more than what you’ve invested in it.
• Your investments are protected with the LC – SL.

2. 100% Spanish company

• The LC – SL is a 100% Spanish company with a registered head office in Spain.
• Your company will be Spanish-speaking with an LC – SL. It doesn’t matter where you are or where you live.
• An LC – SL will allow you to continue living in your country while you conduct business in Spain.
• Your business in Spain will not affect your personal or family life with an LC – SL, this is the other reason to register your company in Spain.

3. No Requirement for a Tax Representative

• The LC – SL is a 100% Spanish company so you don’t need a Spanish tax representative.
• This means that you don’t need to hire a Spaniard to handle your Spanish tax debts and you won’t have to pay one.
• Although banks and insurers can be used as tax representatives, it comes at a steep price.
• You don’t need to ask anyone to be your tax representative with an LC – SL.
• A tax representative is not required for your LC -SL in Spain, however, this is one of the main reasons to register your company in Spain.

4. Easy Access to the Spanish market

• An LC -SL allows you to access the Spanish market. However, the market with a GDP per head of USD 28 156.82, and 46.57 million inhabitants.

• An LC -SL is a Spanish company that is indistinguishable from any other Spanish company.
• An LC –SL will allow you to compete with Spanish companies, and open up new markets.
• A Spanish LC -SL can be used in Spain without discrimination and all obstacles to doing business in Spain will vanish.
• Due to easy access to the Spanish market, it is one of the prominent reasons to register your company in Spain with Spanish companies using an LC -SL.
• We noticed that small Spanish-owned businesses prefer to purchase goods from Spanish companies. With an LC – SL Spain, you can have a 100% Spanish company. 

5. Access the EU market

• Spain is a member of the European Union. A Spanish LC –SL is also an EU Company, a European company.
• An LC -SL in Spain can open trade doors between EU member countries, and even within the EU.
• VAT does not apply to B2B trades within the EU.
• All B2B transactions involving the sale and purchase of goods between EU member countries are exempt from VAT to promote the free movement of goods.

6. Only one partner and a single administrator are required

• The LC –SL can be created by you. You don’t have to rely on anyone else.
• The LC – SL may have one administrator and only one partner.
• You only need one thing. The NIE (foreign identification code)
• You can quickly create the LC -SL. All you have to do is go to the Notary in Spain once and your LC -SL should be constituted.
• Although the process of setting up an LC – SL account in Spain can be complex, it is very easy with the right advice.

7. Low Share Capital Requirement

• You only need EUR 3000 in share capital to create an LC – SL.
• These EUR 3000 are not lost, but you can use it in the LC –SL to pay for your expenses.
• The low capital requirements are one reason that 35% of Spanish entrepreneurs choose the LC – SL to be the right vehicle for their Spanish business and this is the best reason to register your company in Spain. 

Conclusion 

Spain offers the perfect mix of infrastructure and skilled workers at lower operating costs than other countries in Western Europe. The country also has a great maritime connection, which allows for smooth shipping to and from Spain. Spain is also a major producer of food and beverages and could be an attractive location for business in Europe.

If you planning to register your company in Spain, you can speak with our business professionals from OnDemand International professional experts, to help you in structuring your business in Spain. And help you understand all about the laws and mom of forming a business in Spain.